Ch# 03 Planning and risk assessment Flashcards
Planning activities
Overall audit strategy
and
Audit plan
Who is involved in planning of audit?
The engagement partner and other key-members of engagement team shall involved.
Objectives/ Importance/ Benefits of Planning?
PIA DEC
Potential Problems
Important areas of audit
Assist in selection
Direction, supervision and review of engagement team
Effectively and Efficiently
Coordinate with component auditor and expert if any
Audit strategy and its contents
STD
Scope, timing and direction
FR^2C (ferq)
Factors that are significant
Reporting objectives
Resources
Characterstics
Matters documented in audit strategy
FR^2C (ferq)
Factors that are significant
Reporting objectives
Resources
Characterstics
Audit strategy and its contents
STD
Scope, timing and direction
FR^2C (ferq)
Factors that are significant
Reporting objectives
Resources
Characteristics
Audit strategy and its contents
STD
Scope, timing and direction
FR^2C (ferq)
Factors that are significant
Reporting objectives
Resources
Characteristics
Characteristics of the engagement that determine the its scope
E FLI^3CK (Electronic flick the coin)
Evidence obtained in previous periods
aFrf
Location and number of component
Industry
internal audit
Information technology
Client
Knowledge
Reporting objectives of the engagement
TOM Dr. Cr.
Timetable
Organization
Meeting with tcwg and management
Discussion of report
Communication with component auditor
Factors that are significant in directing the engagement teams effort
VISA MRI
Volume of transactions
whether to rely on internal control
Skepticism
Approach of audit
Materiality threshold
high Risky areas
recent developments in INDUSTRY
Resources necessary to perform the engagement
WH^2
When
How
How
Audit plan and its contents
NET
Nature
Timing
Extent
RAP & FAP this includes TOC and SP
Additional planning considerations for initial audit engagement
IP^2O^2 (Initial public offering two times)
Initial selection
perform Procedures
Predecessor auditor
Opening balances
Other procedures
Typical procedures performed in interim audit
TUPPED
testing of TRANSACTIONS
obtaining UNDERSTANDING
Preliminary analytical procedures
potential PROCEDURES
Entity
Documentation
Advantages of interim audit
FEES
Flexible
Earlier
Efficiency
Significant
