How to audit your business
Business owners will be able to make more use of the audit test from next year if the government’s audit watchdog approves its implementation.
Audit testers are expected to use a range of different equipment including a laptop, tablet and a smartphone to make sure their equipment is up to the job.
The National Audit Office said the new test was designed to detect problems early and prevent “misuse”.
It was designed with the goal of giving businesses greater confidence in their audit tools.
“In the coming weeks, the Office for National Statistics (ONS) will publish the final report on the new audit test,” the ONS said in a statement.
“The new test will allow businesses to assess the quality of their audit equipment, the accuracy of their results and the effectiveness of their reporting systems.”
The ONS says the test is “essential to ensure the reliability of audit data”.
It also said that companies should ensure that the test works with their business and not with customers.
“The test will enable auditors to better understand the reliability and integrity of their products, so they can better support businesses and customers in reporting errors and making recommendations on what to do about them,” the statement said.
“Audit testing is a crucial part of the process for businesses to ensure they meet the audit standards set out in the Audit Code of Practice.”
“Auditors should always be on the lookout for anomalies and if they see them, they should report them to the relevant authorities.”‘
This is a test’The ONR said the audit testers will use a variety of different instruments to measure compliance.
The testers will take a range test instruments, including an electronic test device and a manual test device.
They will also use the same instrument to collect data about the quality and effectiveness of audit systems, the ONR added.
There will also be a test instrument that can detect “errors of measurement”.
“This is the final test of the year that will be published by the ONC, the final version of the Audit Tool,” the report said.
An audit test device will be used to measure the quality, accuracy and effectiveness (QA) of the auditors tools, it added.
The audit test will be carried out by “an independent organisation” and will include “the quality and accuracy of the instruments” being used.
It is a “test that gives businesses the opportunity to prove that their audit test results are as good or better than those of their competitors”.
This is “the most important test in the auditor’s arsenal to ensure compliance with the rules of the Code of Conduct,” the National Audit said.