Audit process overview Flashcards
1
Q
client acceptance factors
A
- control factors (within control auditor, expertise, staffing, independence)
- evaluated factors (integrity, reputation, accounting practices)
- business factors (of auditor, auditor gets reasonable profitability from audit)
2
Q
client acceptance examples/steps
A
- discuss predecessor auditor
- engagement letter
- preliminary planning
3
Q
discuss with predecessor auditor
A
- reason why change of auditor
- important risks auditor needs to be aware of
- access to working papers prior auditor
4
Q
engagement letter
A
sets out roles and responsibility auditor and mangement, rules used
5
Q
preliminary planning
A
discussion on fraud, assessment special circumstances
6
Q
business risk audit
A
auditor needs to see the whole organization and its environment to understand the nature of the audit challenges (holistic approach to auditing, complete systems rather than dissection)
