New terminology, concepts and requirements • New assertions and combinations of assertions • New Risk Assessment Procedures (RAP) to obtain an understanding of the entity and its environment • Document the sources of information from which the understanding was obtained • Class Of Transaction or Account Balance ("COTAB") • Individual Account Balance, Class of Transaction and Other Disclosure ("COTABD") • Significant Classes Of Transactions, Account Balances and Disclosures (“SCOTABD) • Transactions Related to Account Balances (“TRAB”) • Relevant assertions • Controls to be identified for purposes of evaluating the design of a control and determining whether the control has been implemented • Identification of the risk of material misstatement at the assertion level for COTABD and then assess only the identified risks of material misstatement at the assertion level • Consideration of whether automated tools and techniques should be used to assist with obtaining an understanding of the entity and its environment and to perform risk assessment procedures • Extent of work needed for indirect and direct controls • Use of inherent risk factors • Spectrum of inherent risk • Likelihood and magnitude of a possible misstatement on a range from higher to lower, when assessing risks of material misstatement • “Stand-back" provision to evaluate the completeness of SCOTABD • Design and perform substantive procedures for each material COTABD • Substantive procedures for SCOTABD, i.e., those with relevant assertions • Assertions to be tested for material COTABD. After attending this course delegates will have a thorough understanding of the following: • Identifying the overall risk in accepting the engagement • Drafting an appropriate engagement letter for a new • Obtaining an understanding of the entity and its environment and documenting this information in the appropriate format (RAP) • Obtaining an understanding of the entity’s information system and control activities • Evaluating and documenting the risk of material misstatement at an overall financial statement level • Evaluating and documenting the risk of material misstatement at the account balance level by assertion • Evaluating and documenting the risk of fraud • Identifying and documenting the significant risks that could result in a material misstatement • Identifying and documenting the factors that affect planning materiality and performance materiality • Calculating and documenting a justifiable level of planning and performance materiality • Identifying and documenting appropriate tests of internal controls, significant risk responses, required procedures, extended analytical procedures, extended tests of detail and sampling. The delegates will be provided with a case study including all the information necessary regarding the client to perform the planning section.

Second-year SAICA trainees, Third-year SAICA trainees Audit managers Audit partners