30188482
Description
Mind Map by Pamela Nuñez, updated more than 1 year ago
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Created by Pamela Nuñez
almost 5 years ago
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Audit Planning
- Planning
- Developing a general strategy
and detailed approach for the
expected nature, timing, and
extent of the audit.
- Developing a general strategy
and detailed approach for the
expected nature, timing, and
extent of the audit.
- Obtain Knowledge of the company.
- In this section we will discuss:
- Obtaining industry
information
- Obtaining general background
of the client company
- The investigation of the company's
legal position
- Industry knowledge: Many industries have
unique accounting requirements that the
auditor must understand to evaluate the
client's financial statements.
- Company Knowledge: Obtaining the required
knowledge of the business is a continuous and
cumulative process of gathering and assessing the
information at all stages of the audit.
- Source of information:
- Management
- Audit committee
- Site visits
- Site visits
- Audit committee
- Management
- Investigate the company's legal position:
Certain legal documents and records
should be collected and examined early in
the engagement.
- Source of information:
- Company Knowledge: Obtaining the required
knowledge of the business is a continuous and
cumulative process of gathering and assessing the
information at all stages of the audit.
- Obtaining industry
information
- In this section we will discuss:
- Obtain and Understanding
of accounting and internal
control systeams
- The auditor should obtain an
understanding of the accounting and
internal control systems sufficient to
plan the audit and develop an
effective audit approach
- The control
environment
- Include:
- The functions of the board of
directors and its committees
- Management's philosophy and
operating style.
- The entity's organizational
structure and methods of
assigning authority and
responsability.
- Management's control system
including the internal audit
function, personnel policies and
procedures and segregation of
duties.
- Management's control system
including the internal audit
function, personnel policies and
procedures and segregation of
duties.
- The entity's organizational
structure and methods of
assigning authority and
responsability.
- Management's philosophy and
operating style.
- The functions of the board of
directors and its committees
- Include:
- The control procedures
- Include:
- Reporting, reviewing and
approving reconciliations.
- Checking the
arithmetical accuracy
of the records.
- Controlling applications and
environment of computer
information systems
- Controlling applications and
environment of computer
information systems
- Checking the
arithmetical accuracy
of the records.
- Reporting, reviewing and
approving reconciliations.
- Include:
- The control
environment
- Procedures to obtain an
understanding of accounting and
control system
- The auditor understands and
documents both the
accounting system and the
internal control system.
- The size and complexity of
the entity and its
computer system
- Materiality considerations
- The type of internal controls
involved.
- The nature of the entity's
documentation of specific
internal controls
- The auditors assessment of
inherent risk
- The auditors assessment of
inherent risk
- The nature of the entity's
documentation of specific
internal controls
- The type of internal controls
involved.
- Materiality considerations
- The size and complexity of
the entity and its
computer system
- The auditor understands and
documents both the
accounting system and the
internal control system.
- The auditor should obtain an
understanding of the accounting and
internal control systems sufficient to
plan the audit and develop an
effective audit approach
- Preliminary analytical procedures
- In the planning stages of an audit,
analytical procedures typically involved
the current period interim data
- In the planning stages of an audit,
analytical procedures typically involved
the current period interim data
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