Our audit approach
Not all audits are the same
Deloitte has developed its own audit approach, based on the International Standards of Auditing (ISA) issued by IFAC. It is the methodology we apply in providing professional services relating to the audit of financial statements, supported by AuditSystem/2 (our proprietary audit software tool).
Deloitte’s audit approach, methodology and supporting technologies are benchmarks within our profession. Through a systematic analysis of risks specific to key business processes, we derive an acute focus on areas, transactions and events that are material to the quality and credibility of financial reporting. Central to our approach is the determination of relevant risks through a careful assessment of the client’s industry and the activities that distinguish it.
The complexities of the client’s businesses and the challenges posed by today’s business and regulatory environment require that professionals with a diverse set of skills and experience be used to perform certain substantive auditing procedures.
We achieve the necessary high efficiency and target orientation of our audit in five main phases:
- Audit planning and preliminary risk assessment
- Assessment of risks and identification of internal controls
- Audit of controls and determination of levels of control assurance over processes
- Substantive procedures
- Processing information and communication
Initially, we work on evaluating the risks and auditing the related controls and counter-measures according to a business process-based audit plan closely co-ordinated with you. The results from this evaluation of the control assurance over processes form the basis for determining necessary substantive procedures. Our methodology supports us in reducing to a necessary minimum the usually time-consuming substantive procedures, without reducing the quality of our audit results.
We equally give significant importance to the presentation of the financial statements.
A key feature of our team is our integrated approach in that specialists are part of the core team and not individuals brought in as required.
Illustrative audit approach diagram (click on the diagram to see it in full size):
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