This course will cover the whole audit process with a detailed look at the following: • Objective of the auditor • Professional judgement and professional skepticism • Assertions • Overall materiality vs Performance materiality • Inquiries, analytical procedures and observations and inspection • Information from Other Sources • Obtaining an Understanding of the Entity and Its Environment, the Applicable Financial Reporting Framework, and the Entity’s System of Internal Control o Entity and its environment o Organizational structure and ownership o Governance o Business Model o Industry factors o Other external factors o The Applicable Financial Reporting Framework • Understanding the Components of the Entity’s System of Internal Control o Control environment o The entity’s risk assessment process o The entity’s process to monitor the system of internal control • Identifying and Assessing the Risks of Material Misstatement o Assessing the risks of Material Misstatement at the Financial Statement Level o Inherent risk o Fraud risk o Assessing Risks of Material Misstatement at the Assertion Level • Relevant assertions • Spectrum of inherent risk • Significant Risks vs insignificant risks • When substantive procedures alone cannot provide sufficient appropriate audit evidence • Disclosures that may be significant • Control Risk o Definitions o The information system and communication o Control activities o Evaluating the design, and determining implementation, of identified controls in the control activities component • Test of Controls • Reporting of Control Deficiencies Within the Entity’s System of Internal Control • Revision of Risk Assessment • Responding to the Risk of Material Misstatement in terms of the new ISA 315 o Substantive Procedures o Substantive Procedures Related to the Financial Statement Closing Process o Substantive Procedures Responsive to Significant Risks • Evaluating the Audit Evidence Obtained from the Risk Assessment Procedures • Classes of Transactions, Account Balances and Disclosures that Are Not Significant, but Which Are Material • Audit evidence • Engagement Team Discussion • Documentation • Communicating with management • Related party testing • Going concern • Subsequent events • Final/Overall analytical review • Evaluations of misstatements • NOCLAR and reporting responsibilities • Deciding on the type of opinion and setting up the audit report i.r.o. the new revised ISA 700

All members of an engagement team who will be performing assurance engagements form partners to first year employees.