bio-alliance provide auditing services to a wide range of companies, business
organizations and to public authorities in accordance with the most recent
internationally applicable programs and international and local standards.
In our audit engagements, our objective is not merely to express an opinion
on the financial statements, but to provide the management with useful
recommendations that will improve the financial and accounting systems.
In addition, we strive to establish ourselves as one of the client's key
advisers in the decision making process.
To reach this goal, our approach involves:
A. At the Audit Team Level:
· Possessing specialized experience in all economic, financial
and industrial sectors.
· Getting full understanding of the nature of the business activity
and its financial and accounting characteristics.
· Working in close collaboration with client staff to maximize
the effectiveness of work
· Establishing strong quality control and close involvement of
assigned partners and managers at all stages.
B. At the Audit Process Level:
· Elaborating careful planning to ensure the scope is responsive
to procedures and controls in operations.
· Identifying the techniques, procedures and measures necessary
to achieve the objectives of internal control.
· Identifying the procedural weaknesses for management's attention.
· Keeping up regular meetings with client management to consider
An important difference in our audit approach is
the close personal involvement and regular communication with management.
You will be dealing with the decision-makers on a day-to-day basis. Another
important factor is the consistency of staff you will witness working
with our firm.
Our audit procedures will be coordinated with your
management in order to minimize any disruption of your regular operations.
We expect to involve your personnel in various phases of the audit to
the extent it is practical. We do not anticipate the transition in auditors
will result in any significant additional time commitments of your personnel.
Audit Planning and Scheduling
The first phase of the audit will be to develop a
mutually agreeable timetable for our work. Yet, we propose the following
Will be conducted covering the financial period ending
at mid year or at the end of the third quarter of the fiscal year. The
first phase of our interim audit will be focusing on planning and assessing
the time, extent and nature of our audit tests that will be implemented
by our audit team during the subsequent audit phases. Company's internal
control structure and key business processes will be reviewed as part
of the audit planning process.
Initial planning for the audit of the financial statements will include:
· A review and preliminary evaluation of the
Company's internal controls based on completing internal control questionnaires,
to determine our audit approach. We will coordinate our completion of
these questionnaires with your key staff to help us gain an understanding
of the company's internal controls and the personnel involved.
· Completion of analytical review procedures to help identify those
audit areas that are most meaningful to our opinion. This review includes
reviewing financial information and other internal reports.
· Determination of audit confirmation sample sizes and materiality
· Based on the information we gather, we will complete our initial
risk assessment and develop our approach with the goal of focusing our
attention on those areas that appear to have the greatest audit risk.
We will also seek input from management during the planning process to
mutually discuss the risk elements in the financial statements to ensure
any areas requiring emphasis are addressed in the audit process.
As part of the planning process, we will review reports
currently produced by the company’s accounting function to ensure
we are familiar with information readily available to us. This knowledge
will allow us to be more specific in our request for information and reduce
the time that your personnel will need to spend with us during our fieldwork.
During our interim fieldwork, we will review the operations and the internal
control design at the company. The purpose of the review of the design
is to give us an understanding of the company and provide us with sufficient
information to properly design our other audit tests. In reviewing the
controls, we will seek to obtain an understanding of:
· The flow of activity through the accounting
· The specific control objectives that relate to points in the
flow of transactions.
· The specific control procedures or techniques that the company
has established to achieve the control objectives set by Management.
Our next step will be to test the company’s
compliance with the system of internal controls. The conclusions as to
the reliability of the internal controls are the basis for setting the
scope and extent of our substantive tests.
A stock count will be taken at the end of the fiscal year. This will cover
all stock items at all warehouses belonging to the company. The purpose
of this procedure is to assess and assure the existence and completeness
of this financial statement element.
Part of our substantive audit tests will be performed during the interim
audit. However the majority of these tests will be conducted at year end
after closing the accounts. The purpose of these tests is to support management’s
assertions on the financial statements. An analytical review of year-end
results will be performed as compared to our substantive testing date,
and we will review management’s financial statements.
A primary focus during these procedures is to ensure
we have identified and assessed the areas of the company’s financial
statements that present a higher degree of risk to enable us to discuss
with you any accounting or financial reporting issues that may exist as
early as possible.
At the conclusion of our fieldwork, we will have
an exit meeting with management to discuss the results of our audit. In
addition, we will discuss any comments that may arise from our audit procedures.
As each of the above phases of the audit is completed,
we will conclude as to the fairness of the test results in relationship
to the audit objective for that procedure. During the course of the engagement,
we will keep management aware of our progress. We will discuss our preliminary
findings and any potential problem or risk areas that may require immediate
attention or opportunities for possible cost savings as they come to our
attention and/or in an exit meeting with management personnel.
The audit culminates with the issuance of our report on the audit opinion
on the company’s financial statements. At the completion of the
audit, we will also submit our letter to management, which provides recommendations
to improve internal accounting controls, administrative efficiencies and
profitability. We will also report on certain matters to be communicated
under local laws and regulations, which include a discussion of new accounting
pronouncements implemented by the Saudi Organization for Certified Public
Accountants (SOCPA), any material proposed audit adjustments, and significant
audit estimates, along with other items.
Draft reports will be provided to management upon completion. Once reports
have been prepared in final form, we will plan to meet with the management
of the company to review the reports and address any questions.