Auditing, as defined by the American Accounting Association, is defined as “an organized and systematic process for collecting and evaluating evidence and evidence objectively related to the results of economic activities and events, in order to determine the compatibility and congruence between these results and the established standards, and to inform the parties concerned of the results of the audit.”
The audit process is carried out in accordance with international auditing standards and Egyptian auditing standards, and in accordance with Egyptian laws and regulations in this regard, in order to reach reasonable assurance that the financial statements do not contain errors or distortion. Audit work includes the following:
1- Conducting a test audit of the establishment's accounting records and their documents according to the audit procedures planned in light of the establishment's circumstances.
2- Examining and evaluating the accounting principles and policies followed in the establishment and the provisions determined by the establishment's management by way of estimation.
3- A general assessment of the way the financial statements are presented and the disclosures and explanations they contain.
4- Doing a periodic review during the year that includes examining and evaluating the accounting systems and internal control systems applied in the facility and carrying out all the necessary tests to verify the soundness of applying those systems and their efficiency and making the necessary professional effort to discover significant errors and irregularities that may have an impact on the financial statements of the facility.
5- In the event that there are important observations resulting from the periodic review, they are sent in a report to the management of the facility that includes these observations and recommendations to address them, after discussing them with the management of the facility.
6- Make a final review at the end of the year, including the following:
• Examine and reconcile the final accounts on the accounting records.
• Checking the existence of the assets that appear in the budget, their value, and the amounts of obligations and provisions, to verify that the budget clearly reflects the true financial position.
• Examining the income statement to ensure that it shows the validity of the result and operation of the facility.
• Ensure that the disclosure and presentation of the clarifications supplementing the financial statements were made in accordance with generally accepted accounting principles and in light of the applicable laws and regulations.
• Preparing the auditor's report on the financial statements at the end of the fiscal year. Upon completion of the final audit work, if it becomes apparent that there are observations related to the audit of the financial statements or any other observations other than what was mentioned in the report on the result of the periodic audit, a report will be sent that includes our observations on the final audit work, after discussing it with the management of the facility.