NFRA rolls out audit toolkit to aid small and medium practitioners

NFRA said that the development and document of audit strategy has to be commensurate with the risk profile of the auditee entity

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The National Financial Reporting Authority (NFRA) has issued an audit practice toolkit with a focus on supporting small and medium practitioners of audits.

 

NFRA said that the development and documentation of the audit strategy must be commensurate with the risk profile of the auditee entity. “This toolkit is intended to be a sample document that is scalable and adaptable to different sizes and industry categories of the auditee companies,” the regulatory body said in a press statement.

 

The authority said auditors are required to update both the strategy and the plan as the audit progresses, and if a significant fraud risk is discovered mid-audit, both the strategy and the plan must be revised accordingly.

 

Planning is not a discrete phase of an audit but rather a continual and iterative process that often begins shortly after the completion of the previous audit and continues until the completion of the current audit engagement, NFRA said.

 

The document prepared by NFRA uses a hypothetical example of an automotive company to illustrate the audit requirements and the challenges that might arise specific to the sector.