Module 14

Question 1

key elements of engagement and client management

Answer 1

firm resourcing
working paper management
communication with those charged with governance

Question 2

engagement letter

Answer 2

objective and scope
responsibilities of auditor
responsibilities of those charged with governance
applicable financial reporting framework
form and context of any reports

Question 3

audit strategy memorandum

Answer 3

background client information
systems and control information
staffing and key client contracts
materiality
analytical procedures results
risk assessment findings and procedures planned in response
timetable

Question 3

management letter

Answer 3

allows communication of any deficiencies in internal control systems and misstatements
issued ASAP after final accounts are signed

Question 4

interim management letter

Answer 4

findings at systems and controls stage

Question 5

points forward schedule

Answer 5

at completion the auditor will document any findings and information that will help with next years audit

Question 6

audit highlights/ summary review memorandum

Answer 6

document conclusions and key matters of importance

Question 7

engagement quality review

Answer 7

listed companies - EQR must be involved to ensure this review is carried out