AuditingExam3-Basics

• 1 Plan & Design an Audit Approach
• 2 Perform Tests of Controls & Substantive Tests of Transactions
• 3 Perform Analytical Procedures & Tests of Details of Balances
• 4 Complete the Audit & Issue an Audit Report

• 1 Sales & Collections
• 2 Acquisition & Payment
• 3 Payroll & Personnel
• 4 Inventory & Warehousing
• 5 Capital Acquisition & Repayment

• 1 Physical Examination
• 2 Confirmation
• 3 Documentation
• 4 Analytical Procedures
• 5 Inquiries of the Client
• 6 Recalculation
• 7 Reperformance
• 8 Observation

• 1 Auditor decides whether to accept a new client or continue with existing one
• 2 Auditor identifies why the client wants or needs an audit
• 3 Auditor obtains an understanding with the client about the terms of the engagement
• 4 Auditor develops an overall strategy for the audit including engagement, staffing, & required audit specialists

An agreement between the CPA firm & client as to the terms of the engagement for the conduct of the audit & related services

• 1 Objectives
• 2 Responsibility of auditor & mgt
• 3 Engagement Limitations
• 4 Restrictions imposed on auditors
• 5 Deadline for completition
• 6 Clients assistance in obtaining docs & records
• 7 Schedules to be prepared for the auditor
• 8 Agreement on Fees

• 1 Required in planning phase to assist in determining nature, extent & timing
• 2 During the testing phase as a substantitive test in support of account balances
• 3 Required during the completion phase of the audit as a final review for material misstatements