Planning Flashcards
Give 3 benefits of planning
Attention is paid to to the important areas of the audit
Potential problems are identified and resolved on a timely basis
Audit engagement is organised and managed
Work is properly assigned to the individual team members
Reduces risk of giving the wrong opinion
When is the interim audit performed
Before the year end
What is the purpose of the interim audit
Allows the auditor to spread out their procedures
Useful when there is increased detection risk due to a tight reporting deadline
When is the final audit perfomed
After the year end
What is the purpose of the final audit
To obtain sufficient appropriate evidence in respect of the financial statements
Give 3 examples of work that is performed at the interim audit
Options:
Documenting systems
Evaluating controls
Attending perpetual inventory counts
Assessing risks that will impact the final audit
Testing of the transactions for the year to date or material transactions
Give 3 examples of work that is performed at the final audit
Options:
Obtaining evidence that the controls tested have continued to operate
Testing of SOFP and SOPL transactions
Completion activities - going concern, subsequent event reviews, overall review of the financial statements
Define fraud
Intentional act
Define error
An unintentional mistake
Who do you report fraud to
Management
Those charged with governance
Third parties if there is a duty to report
What do you do if the fraud is material
Modify the audit opinion
Give 5 things that you will find in working papers
Options:
Reporting date
File reference
Name/date of preparer
Name/date of reviewer
Subject of working paper
Objective
Work performed
Results and conclusions drawn
Give 2 benefits of documentation
Options:
Provides evidence of the auditors conclusion
Provides evidence of planning
Assists with direction, supervision and review of work
Enables the engagement team to be accountable for its work
How long should audit documentation be kept for
Retained for 5 years from completion
