1. What is Audit & Assurance?
Audit & Assurance is an evaluation of an organization, system and process. They are performed to ascertain the validity and reliability of information, and also provide an assessment of a system’s internal control.
The goal of the audit is to express an opinion as to whether the financial statements give a true and fair view of (present fairly, in all material aspects,) the financial position of the club as of the financial year and of the results of its operations and its cash flows for the year ended.
Hence, statistical sampling is often adopted in audits. In the case of financial audits, a set of financial statements are said to be true and fair when they are free from material misstatements – a concept influenced by both quantitative and qualitative factors.
2. Why is it important to engage an Audit & Assurance Service for my Society/Club?
It is crucial to engage an Audit & Assurance Service to review the Society’s/Club’s financial status, system processes and internal controls, and to test the effectiveness and efficiency of these components. It would also serve to increase accountability and transparency to its stakeholders and members.
3. Why should my Society/Club engage NAAT for audit?
Our student auditors represent a neutral and impartial party which would be deemed to have no interests in the Society/Club. This would ensure greater accountability and transparency when the audit commences.
4. What will my Society/Club gain out of this audit experience?
After an audit is completed, the Society/Club will be able to develop a greater understanding on the handling of financial matters, preparation and presentation of the financial statements, a greater insight on the effectiveness and efficiency level of the Society’s/Club’s handling of financial related matters as well as an analytical perspective on the variances in the financial statement’s components. An auditor’s report on the financial statements and suggestions for improvements would also be presented to the management of the Society/Club.