Entities conduct
external audits to obtain an independent, third-party perspective or assurance
on their financial position and performance. The objective of the external
audit at Virtual Accountants LLC is to provide reasonable assurance to the
stakeholders based on the evidence garnered by the engagement team during the
phases of planning, execution, and completion. Auditors are required to apply
the International Standards on Auditing (ISAs) issued by the International
Accounting and Auditing Standard Board (IAASB), as well as the pronouncements and
regulatory guidance provided from time to time by the local standard setting
bodies and authorities.

At Elucidation for
Accounting (ElucidationAcc), our audit methodology or approach is risk-based,
which means that the scope of procedures required depends on the type and level
of risk to which an entity is exposed. We implement Test of Controls (TOCs)
during the preliminary phases of the engagement and use the results to
determine the timing and scope of Substantive procedures. The relationship
between the two quantities is inversely proportional, or i-e. The greater the
controls, the lower the risk, and the fewer substantive tests will be required.
This methodology implies that the Risk factor is of utmost importance in
deriving the entire engagement and that controls play a crucial role in
mitigating the risks to which the entities are exposed.

External factors
(Political, Economic, Social, Technological, Environmental, and Legal) and
internal factors (non-systematic risk) influence the risks to which an organization
is exposed. Our substantive testing consists of Analytical Procedures (AP) and
Test of Details (TOC). The conclusion reached always reflects the collected
evidence and is always supported by ISA guidance, local laws and regulations,
and international practices. Our findings, which comprise a portion of the
deliverables we issue, are approved by the entity’s upper and lower management
at appropriate stages. We regard value addition as one of the most essential
facets of the engagement, and we always strive to provide it to our esteemed
clients within the confines of our professional standards and international
practices.