What is the audit process step by step?

[jasminsain]

I want to understand what actually happens during an audit — from planning to the final report. How long does it take, and what documents do auditors typically request?

 

[kuldeep]

Here’s a clear, step-by-step walkthrough of a typical financial audit process:

1. Pre-engagement/Client acceptance — Evaluate independence, conflicts, and whether to accept the engagement; agree scope, timeline, and fees.
2. Engagement letter — Document objectives, responsibilities, scope, deliverables, and terms in writing.
3. Planning — Gain understanding of the business, industry, and accounting policies; set materiality and audit strategy.
4. Risk assessment — Identify and assess risks of material misstatement (fraud and error) at the financial-statement and assertion levels.
5. Internal control review — Understand and test relevant internal controls to determine reliance and design of substantive procedures.

 

[inshya]

The audit process is a systematic examination of an organization's financial records and processes to ensure accuracy and compliance, which involves distinct phases: planning, fieldwork, and reporting. Auditors first plan the audit by defining its scope and assessing risks, then conduct fieldwork to gather evidence and evaluate internal controls, and finally, they issue a report summarizing their findings and an opinion on the financial statements.