Our audit approach
| Objective |
|
We will conduct our audit in such a manner as to enable us to
express an opinion that the financial statements are prepared, in all
material respects, in accordance with International Financial
Reporting Standards (comprising International Accounting Standards and
Interpretations issued by the IASB) or other generally accepted
accounting principles where required. |
| Professional standards |
|
Our work
will be conducted in compliance with International Standards on
Auditing or other generally accepted auditing standards where
required. We will also comply with the Code of Ethics for Professional Accountants issued
by the International Federation of Accountants, including guidance on:
(a)Independence;
(b) Integrity;
(c) Objectivity;
(d) Professional
competence and due care;
(e) Confidentiality;
(f) Professional
behavior; and
(g) Technical
standards. |
| Client service |
|
The small size of our firm, and the fact that all of the audit
field work is completed by experienced managers allows us to respond
to management requests promptly and complete the audit quickly and
efficiently . Furthermore, we believe that our staff are an important
resource upon which management may draw upon throughout the year and
we are committed to being readily accessible. |
| Client visits |
|
We will meet periodically with management during the year to
review the periodic management accounts and discuss significant issues
as they arise. This is important to reduce the possibility of
unexpected items arising during the year end audit that might delay
the issuance of the audited financial statements. |
| Planning |
|
We will meet with management well before the commencement of
the audit fieldwork to update our understanding of the company and its
activities, identify key events and transactions occurring during the
year, and allow management to discuss any specific concerns relating
to the audit or the company’s operations. This information will be
used to develop a general strategy and a detailed approach for the
expected nature, timing and extent of our audit procedures. |
| Knowledge of the business and industry
|
|
Knowledge of
the company and the industry in which it operates is essential to
assessing risks, identifying problems, and completing an effective and
efficient audit. This knowledge is also key to providing
recommendations to management and adding value to the audit. Our team
brings a solid business orientation to the audit, allowing us to step
back from the numbers where appropriate and focus on the matters that
are important to management in running the business. |
| Risk assessment |
|
We will use our knowledge of the business and the industry, our
discussions with management, and our review of interim financial
information to identify areas and transactions where the risk of
material misstatement is higher, and focus our audit effort on these
areas. We are committed to increasing the efficiency of the audit
process by eliminating time spent by the audit team and by the
company’s management and staff on insignificant transactions and in
areas where there is little risk of a material misstatement. |
| Interim visit |
|
Where necessary, we will perform an interim audit prior to the
company’s year end to reduce the amount of year end work required. |
| Reliance on internal controls |
|
The development of an efficient and effective audit approach requires
a thorough understanding of the company’s accounting and internal
controls systems. We will document and assess the company’s
computerized and manual internal controls, including the general
computer controls and environment (ie. the operating system and
computer room). We will then test selected controls where we determine
that such controls may be relied upon in achieving our audit
objectives in the most efficient and effective manner. |
| Analytical procedures |
|
Analytical
procedures are the analysis of significant ratios and trends, and the
investigation of fluctuations and relationships that are inconsistent
with expectations. This includes variance analysis and reasonableness
tests and will be performed in order to get comfort over balances and
transactions at a high level and identify unusual or unexpected items. |
| Detailed tests |
|
The nature and extent of our detailed testing of balances and
transactions (for example vouching of invoices, and confirmation of
balances) will be determined by the level of audit comfort derived
from our reliance on internal controls and analytical review. |
| CAATs |
|
Computer-Assisted Audit Techniques (CAATs) will be employed
where possible to speedily perform more effective detailed tests. |
| Management letter |
|
We expect to
provide you with a separate letter concerning any material weaknesses
in the design or operation of the accounting and internal control
systems which come to our attention. We will also include, or
communicate orally, general observations and business recommendations
as appropriate, as we believe that this is a vital component of our
service to the company. We also recognize the importance of providing
our recommendations in a timely fashion. |
| Emerging accounting issues |
|
We will be available as needed for consultation on new
accounting standards or other accounting issues, and to help
management through the process of implementing any new standards. |
| Quality Control |
|
Our firm has implemented
quality control policies and procedures designed to ensure that all
audits are conducted in accordance with International Standards on
Auditing. |
| Fraud |
|
Although it is not the main purpose of the audit to discover
fraud, International Standards on Auditing require that our work be
planned in such a way that there is a reasonable expectation of
detecting any material irregularities that exist. |
| Timing/deadlines |
|
We recognize management’s need to have the audit completed in
a timely fashion, with minimal disruption to normal business
activities, and this is one of our key service objectives. |
| Corporate governance |
|
We will be
available to attend meetings of the Audit Committee or Board of
Directors as required. |
| Fees |
|
Our fees are based on
the time required by the individuals assigned to the engagement plus
out-of-pocket expenses.
We believe
that our fees are competitive given the level of experience of our
staff and the high quality of service provided. |
| Tax services |
|
Our range of services includes tax compliance (preparation and
filing of the company’s corporation tax returns) and tax planning. |
|
R S Kirby, PO Box 345, Bridgetown, Barbados.
Lucerne Building, The Courtyard, Hastings, Christ Church, Barbados.
Phone (246) 430-3030 Fax (246) 435-0456
E Mail info@rskirby.com
|
