Relevant Financial Policies and Procedures: Analyze whether the information in financial policies and processes is sufficient and appropriate. Determine that these documents are up-to-date comprehensive, and compliant with the relevant regulations and best practices. 

2. Materiality Thresholds: To determine which financial transactions or discrepancies should be included in the audit, establish materiality thresholds. This makes it easier to concentrate on important financial issues while avoiding unnecessary detail.

3. Risk Assessment: To identify areas of potential financial non-compliance, perform a risk assessment. To properly allocate resources, focus the audit on areas with higher risks.

Aspects covered in audit (minimum of 3)

A finance audit, also known as a financial audit, is an examination of a company's financial statements and related operations to ensure accuracy, compliance with accounting standards, and reliability of financial reporting. Here are the key aspects covered in a finance audit:

(a) Financial Statements:

Balance Sheet: Verify the company's assets, liabilities, and equity as of the audit date.

Income Statement: Examine revenue, expenses, and profits to ensure accurate reporting.

Cash Flow Statement: Confirm the company's cash inflows and outflows for the period.

(b) Accounting Policies and Standards:

Review the company's accounting policies to ensure compliance with applicable accounting standards (e.g., GAAP or IFRS).

Verify that changes in accounting policies are properly disclosed and explained.

(c) Internal Controls:

Assess the effectiveness of internal controls over financial reporting to prevent and detect errors or fraud.

Evaluate the design and implementation of control procedures related to financial transactions.

(d) Revenue Recognition:

Confirm that revenue is recognized in accordance with the company's chosen accounting method and relevant standards.

Check the accuracy of revenue figures, ensuring they are supported by appropriate documentation.

(e) Expense Recognition:

Examine the recognition and classification of expenses to ensure they align with accounting principles.

Verify that all relevant expenses are recorded in the correct accounting period.