What happens when your audit files are selected for review by IRBA? What can be done to avoid negative findings during an IRBA Inspection?
These questions have no easy answers. However, it is not impossible to overcome.
What makes the process challenging is the staggering number of Auditing Standard requirements that need to be adhered to.
The key approach is to:
• Identify which of the findings repeatedly make their way onto the IRBA Public Inspection Report, and
• Establish why there are repeated infringements.
The aim of this course is to ensure that you have everything that is necessary in your audit file for it to comply with the Auditing Standards and to avoid inspection findings.
Firms using the CaseWare Audit Methodology will be shown where in the software all the requirements are to be documented.
During this course we will also be covering all the inspection findings from the most recent IRBA report (2017) and common mistakes to avoid. Some of the most relevant topics I will discuss are the following:
• 7 Step plan to comply with the ethical and independence requirements during the engagement
• 10 Significant matters that must be discussed with management
• All the procedures that must be performed during client acceptance e.g. pre-conditions, declaration
by management, client integrity and money laundering considerations
• How to determine the correct desired audit risk to avoid over-auditing later during the audit
• How to perform powerful preliminary analytical procedures
• Calculating the correct performance materiality amount to avoid over-auditing
• All the different risk assessments e.g.:
o Audit risk
o Inherent risk
o Control risk
o Fraud risk
o Detection risk
o Significant risk
o Presumed risk
o Business risk
o Risk of material misstatement
• Overall responses to risk at financial statement level
• Responses to significant risks at assertion level
• What the auditors responsibility is regarding internal controls e.g.:
o When are controls relevant to the audit?
o Design and testing of implementation (walk-through procedures)
o Controls over significant risks
• General mistakes and issues noted on working papers relating to improper documentation
• Subsequent events
• Going concern
• Written representations
• Final materiality
• Evaluation of misstatements
• Final analytical review
• Lock down of files
• Making changes after lock down
• Audit report
• Reporting in terms of section 45 (RI) and NOCLAR.
Specific attention will be given to the following high-risk areas:
• Testing of revenue and when to rebut or not
• 7 Step plan to test journals
• Related parties and transactions outside the normal course of business
• Sample sizes (test of control and substantive sampling)
This training will be presented at an advanced level and all seniors, Managers and Partners that form part of the review process will benefit
• Own computers (PC or laptop) with Excel loaded onto the machine
• Internet Connection (Wi-Fi or 3G) with sufficient data for the day
• USB headset (microphone, speakers) for each delegate
• Webcam (external or built-in) for each delegate
• For the engagement activities and online tools, other devices such as the iPad and iPhone are not recommended
• Delegates must bring their own computers with CaseWare 2018 Working Papers and Caseware audit
template CaseWare 2018.02.01 already loaded.
• All software must be fully licensed. All other material and stationery will be provided.
• Please ensure that you are logged in 15 minutes prior to the start of the session.
• The IRBA Inspection Report, needs to be printed prior to the course, by the client, due to copyright
infringement, and brought to the course.