Audit and Assurance

‘Audit’ originally meant ‘to listen, improve and achieve’.

Although audits are often viewed as 'just' a statutory requirement, it's actually a really vital part of strategies for the future of your business and our comprehensive approach to audit reflects this.

We provide audit services for a wide range of businesses. We listen to your concerns, focus on risk and make sure all issues are dealt with promptly and effectively. This approach ensures that we can maintain a cost effective and competitive pricing structure for audit and assurance services.

Audit Approach & Methodology

In this way, we believe that our audits yield higher levels of quality, relevance, and efficiency. Understanding these activities and operations yields insight into the organization’s financial statements and a better audit.

To work this way, we strive to truly understand your business, including the systems, procedures, internal controls, and the people who drive the business. We continually update our audit approach in anticipation of our clients’ changing business environment.

Details of our audit methodology to be followed in conducting the audit is as below;

Audit Plan

The audit plan (or audit planning memorandum) summarizes our methodology as a result of the planning already undertaken (i.e., appointment and risk procedures).

Our audit plan describes the expected audit work required to achieve our audit objectives. The detail recorded in the audit plan is sufficient to guide development of the detailed audit program and audit procedures to be performed.

The methodology we take for audit areas will depend on the number of factors, including the:

  • Assessment of overall risk;
  • Assessment of internal control;
  • Assessment of risk at the audit assertion level;
  • Applicability of adopting tests of controls;
  • Quality and quantity of audit evidence that can be derived from analytical procedures; and
  • Amounts of other substantive test of detail required on balance sheet and profit and loss items.

The level of detail will depend on the risks and nature of the client and the relative complexity of individual areas.

Having completed the audit plan, we supplement this with a detailed program of procedures. As with the audit plan, a copy of these procedures (our audit program) can be reviewed and, if necessary, updated in future years avoiding unnecessary repetition.

The level of detail included on the program for any given assignment or section of an assignment will depend on the assessed risk of material misstatement.

Internal Controls

We obtain an understanding of internal controls relevant to the audit which is sufficient to plan the audit and develop an effective audit approach.

Internal control is broken down into five elements:

  • Control environment;
  • Entity’s risk assessment process;
  • The information system (including related business processes relevant to financial reporting and communication);
  • Control activities; and
  • Monitoring of controls.

To achieve the requirements, we first obtain a detailed record of the clients accounting systems and internal controls.

After obtaining full description of the client’s accounting systems and internal controls, we assess the risk of material misstatements at the assertion level and evaluate what controls are in place. We begin by answering some key questions on controls. The level of response to the internal controls is dependent on our assessment of the risk of material misstatement at the assertion level.

Confirmation of design and implementation of controls

Where we have recorded the controls based purely on enquiry, we confirm that these controls have been implemented. We achieve by a walkthrough test or other methods of observation, enquiry or inspection of documents. We also carry out some form of test of design and implementation for each material accounting system each year.

In practice, the confirmation of the systems may not be carried out until the fieldwork stage of the audit and our planning is based on the presumption that the system and controls will have been properly implemented. Of course, if when carrying out our tests we discover this not to be the case, we would revise our planned approach accordingly.

Tests of operating effectiveness of controls

Depending both on risks of material misstatement and on the quality of the client’s accounting systems and internal controls, we may choose to adopt tests of controls for some audit assertions. This approach seeks to enable us to reduce our substantive testing by placing reliance on the clients' individual internal controls.

When tests of control are required they should be carried out throughout the accounting period if those controls are to be relied upon. All exceptions should be investigated regardless of the amount involved. Where no exceptions are found substantive testing may be restricted. However, because there is always the possibility that systems and controls can be overridden, we must always carry out some supplementary substantive work. The circumstances where we would need to carry out more detailed tests of controls to confirm that they have been operating effectively throughout the period.

Our assessment of risk at the assertion level is based on an expectation that controls are operating effectively then we test these controls to provide sufficient evidence that this is the case.

Analytical procedures

Analytical procedures are applied as substantive procedures which systematically analyze and compare related figures, trends, ratios and other data with the aim of helping plan the work, review the financial statements and of providing evidence to support the audit opinion on the financial statements.

Their purpose is to provide evidence about the completeness, accuracy or validity of the accounting records or financial statements. They ensure that items under review appear credible and determine that there are acceptable explanations for any unusual trends or fluctuations. With intelligent and effective application, analytical procedures frequently bring to light material errors.

The data used in analytical procedures may be financial or non-financial and may originate from within or outside the client. However, we ensure that the data being used is both reliable and relevant. Analytical procedures form part of our substantive evidence. In determining the extent of the use of analytical procedures for such substantive audit evidence, the following points are kept in mind;

The nature of the enterprise and its operations – It is important that the auditor not only understands the client's business, but also has some knowledge of the industry as a whole and can therefore use this experience to interpret results and fluctuations.

The availability of financial and non-financial information – This will affect both the nature and timing of the procedures. If useful information is immediately available, we may use analytical procedures to set the scope of our work. However, if the information is only available towards the end of the audit, we may use it to provide additional evidence to support our conclusions.

Other substantive tests of detail

On some assignments and at least on some sections of most assignments, the combination of tests of control and analytical procedures will provide sufficient evidence. However, sometimes, other substantive tests of detail will be necessary to confirm key audit assertions. Such tests will consist of one of the following:

  • Selecting all items (100% examination);
  • Selecting specific items;
  • Audit sampling

Whichever method we use, we determine means of selecting items for testing that is effective in meeting the purpose of the procedure. Selecting all items may be appropriate where the population constitutes a small number of large value transactions. Selecting specific items from a population may include:

  • High value or key items;
  • All items over a certain amount;
  • Items to obtain information;
  • Items to test control activities.

Whilst this may be an effective means of gathering evidence, it does not constitute audit sampling. As seen above, not all tests are conducted on a sample basis. The decision not to use sampling for a particular audit area will normally be based on:

  • Risk;
  • Materiality;
  • Relevant objectives;
  • Reliance on other work performed (e.g. accounts preparation, management accounts);
  • Reliance on analytical procedures

Based on the results of substantive test, it is assessed that whether the audit evidence obtained is sufficient and appropriate to form any audit opinion.

Audit Approach & Methodology Summarized

Approach & Methodology (summarized)

Estimated Time Frame

The overall assignment plan will cover the whole period of the assignment, presenting the team’s activities against a time table broken down into weeks. It will specify the starting and final points of all activities, the volume of work (person days/weeks) in every period in the time table, and points of time for submission of reports and for progress control of the assignment.

The above time estimate is a flexible estimate in view of our experience that at time the flow of information is not with the speed as we request and in order to cover those gaps we have taken the maximum possible time to complete the assignment. In case the required information are available and if the flow thereafter is also seamless, we can definitely save on this time which would be in our own interest too and therefore we can complete the whole process in combatively shorter time.



  • “I bow to all staff at AASC for their understanding, professionalism, competence, patience and tact. They are specialists of high grade with a personal touch and attention to detail.“

    Adnan, Development Institute Director

  • “Truly a great team. Highly motivated, experienced and focused on delivering a great service. No wonder they are one of the most respected providers in UAE.“

    Ghassan, Al Waseet

  • “When selecting our auditing company, we focused on the companys reputation, service quality and level of expertise. For us, AASC have proved to be the right choice”

    Hamdy, Printing Press