Outline the nature of audit planning and describe its principal Essay

Out delimit the nature of audit intend and describe its principal objectives, identifying issues that you consider to be relevant to the readiness of the audit of FXT - Essay Example readying in auditing the books of FXT internationalistic particular(a) pass on ensure that the auditing process produces the maximum out of the minimum. The various aspects of auditing the books of FXT International restrict include vouching, verification and valuation (Kumar and Sharma, 2005, p. 59).It is Abacus plan to conduct an effective audit through an competent approach that volition last the shortest possible time. The base of the auditing plan is FXT International Limiteds line of business. FXT International Limited offers structured pecuniary products as well as financial derivatives to institutional investors. Therefore, the basis of the auditing plan is the understanding of the financial and derivatives market. Abacus will perform tests of control and procedures to come up with reas onable conclusions that will assist in the formation of an opinion on the clients financial statements (Kumar and Sharma, 2005, p. 72). The plan will be based on FXT International Limiteds accounting system policies and procedures that direct its inherent control processes. Concisely, some of the factors that Abacus will consider when planning the audit include4. Knowledge of FXT International Limited business apart from the reporting requirements of financial services institutions. It is the most important factors that Abacus will consider when planning an audit.It is the most important factor because it will enable Abacus to identify the events, transactions and practices that may affect financial information. Auditors will derive such knowledge from areas such asThe article of association will wee-wee auditors ideas about FXT International Limiteds size and nature. Additionally, auditors from Abacus will acquaint themselves with the management of FXT International Limiteds busi ness (Kumar and Sharma, 2005, p. 80).Accounting standards requires that listed companies publish audited books of account. The rationale is