Regulation 127 — REGULATIONS_AUDIT

127. Principles of Public-sector auditing and principles related to audit process (1) The general principles of public sector auditing that the auditor should consider prior to commencement and at more than one point during audit comprise ethics and independence, professional judgement, due care and skepticism, quality control, audit team management and skills, audit risk, materiality, documentation and communication as given in the Auditing Standards. (2) Principles related to the audit process are explained in the Auditing Standards and comprise

(a) Planning

(i) Establish the terms of the audit engagement

(ii) Obtain understanding of the entity

(iii) Conduct risk assessment

(iv) Determine Materiality

(v) Identify risks of fraud, as applicable

(vi) Develop an audit plan – audit objectives, scope, approach and methodology, resource allocation, timelines across stages of audit

(b) Conducting the Audit

(i) Perform the planned audit procedures to obtain audit evidence

(ii) Evaluate audit evidence and draw conclusions

(c) Reporting and follow-up

(i) Prepare a report based on the conclusions reached

(ii) Follow up on reported matters as relevant