Financial Education - Effectiveness of the audit process admiratively

The effectiveness of the audit process taking into account the structuring of the work team, the timely and adequate participation of experienced personnel, the commitment of the internal auditors, the adequate use of technology and the audit methodology.

The result of the proper execution of the above factors is seen in aspects such as the reliability of audit reports, the usefulness of audit reports, the quality and usefulness of audit communications to those charged with governance, and the transparency of reports (IAASB, 2014).

Quality auditing is vital in companies of all sizes, therefore the elements that comprise it should be applicable for all audits, however, they may be different for small companies, due to the fact that in this type of entities there is sometimes no separation between management and those charged with governance.

Internal financial reporting expertise is sometimes lacking and there are long-term relationships with clients; therefore the nature and duration of the audit may influence the final outcome (IAASB, 2014).

In this sense, the financial reporting framework for micro and small companies is less complex, which helps the audit work to be less complex as well. The IAASB, in its 2014 update to the quality audit framework, established the following attributes to the audit process, which are mostly part of the requirements to comply with each of the elements of the quality control system in the audit.