The following will be discussed during the session
Professional Scepticism (new)
• New guidance issued
Audit consideration i.r.o going concern in the current economic environment (new guidance issued)
• Including Trading Under Insolvent Circumstances
Assertions
• The 5 assertions for transactions
• The 5 assertions for balance sheet items
• Direction of testing for each assertion
• Risk assessment at assertion level
• Example of audit procedures to perform for each assertion
• Selection of sample sizes for each assertion
• Finding issued by IRBA w.r.t assertions
ISA 315 (New revised standard)
• Discussion of new requirements
Revenue testing
• Completeness testing – Direction
• Possible scope limitations when testing revenue
• Effect of scope limitation on the audit report
• Presumed fraud risk testing – Design of working paper to reflect fraud tests
• Testing per revenue stream
• Meaning of “rebuttable”
• Possible review findings by IRBA
Auditing Accounting Estimates (new)
• Discussion of new ISA 540
• Risk assessment per estimate
• Different audit procedures to perform based on risk assessments
• Design of new working paper to reflect work performed
Audit consideration regarding significant, unusual or high complex transactions
Journal testing
• 7 step-plan to test journal entries
Testing of related parties and transactions outside the normal course of business
• Risk assessments
• Specific audit procedures to perform
10 Step audit-plan
Practical exercise: Delegates will be provided the opportunity to apply all the above principles to design their own audit programs for specific line items
