• Course Objectives
• Understand and apply ISA 315 to assess the risks of material misstatement.
• Develop appropriate responses to assessed risks based on ISA 330.
• Use CaseWare Probe to streamline audit processes.
• Reinforce professional skepticism and judgment throughout the audit process.
• Document the risk assessment, assertions, and responses efficiently using CaseWare.
  
  

Introduction and Agenda Overview

• Overview of course content, objectives, and expected outcomes.

Terminology and Key Concepts

• Definitions and essential terminology used in CaseWare and ISA standards.

CaseWare Probe Methodology

• Overview of CaseWare Probe tools for planning and executing audits.

Risk Identification and Assessment (ISA 315)

• Identifying risk of material misstatement (ROMM) at the financial statement and assertion levels.
• Evaluating entity risk factors: organizational structure, governance, and industry influences.

Responses to ROMM (ISA 330)

• Designing audit procedures to address identified risks.
• Tailoring audit strategies based on assessed risks.

Professional Skepticism in Auditing

• What is Professional Skepticism?

• The importance of skepticism to detect fraud and error.
• Avoiding bias towards corroborative evidence.

• Key Elements of Skepticism:

• Questioning mind.
• Contradictory information.
• Trust Nobody, Ask, Show, Inspect, Document.

• Practical Application:

• Assessing the reliability of client-prepared schedules.

Professional Judgment in Auditing

• Defining Professional Judgment:

• Making informed decisions using principles, experience, and available data.

• Application:

• Substantiating conclusions with documented evidence.
• Using judgment to determine significant risks and responses.

• Documentation in CaseWare Probe
  
  • Documentation Requirements:

• Ensuring consistent, concise, and complete audit documentation.

• COTAB and COTABD:

• Class of Transaction or Account Balance (COTAB).
• Significant Classes of Transactions, Account Balances, and Disclosures (SCOTABD).

Assertions and CaseWare Settings

• Management Assertions Overview:

• Completeness, Existence, Rights and Obligations, Accuracy, Cut-Off, Presentation, and Disclosures.

• Assertions in CaseWare:

• Mapping assertions to risks and controls.

Engagement Evaluation (ISA 315) – Section 10.20

• Desired audit risk levels and planning for going concern risks.
• Evaluating user impact on audit planning.

Materiality Assessment (ISA 315) – Section 10.60

• Determining overall materiality, performance materiality, and trivial thresholds.
• Revising materiality during the audit process.

Risk Assessment Procedures (RAP)

• RAP Elements:

• Inquiries, analytical procedures, observation, and inspection.

• Understanding the Entity and Environment:

• How to document inquiries and responses from management.

Types and Volumes of Transactions (ISA 315) – Section 10.51

• Assessing transaction patterns and volume for audit planning.
• Tailoring work programs using CaseWare.

Analytical Review Procedures (ISA 315) – Section 10.52

• Identifying anomalies through analytical procedures.
• Creating expectations for account balances.

Understanding Accounting Estimates – Section 10.53

• Evaluating estimates for bias or misstatements.
• Documenting estimation models and assumptions.

Information Technology in Auditing (ISA 315) – Section 10.55

• Assessing IT infrastructure and processes for audit relevance.
• Evaluating IT risks and determining the need for specialists.

Risk of Material Misstatement (ROMM) Overview

• Identifying and assessing ROMM due to error or fraud.
• Distinguishing between inherent risk and control risk.

System of Internal Control – Section 11.30

• Evaluating the control environment and governance structure.
• Identifying control deficiencies and monitoring processes.

Fraud Risk Assessment – Section 11.25

• Assessing incentives, opportunities, and rationalization for fraud.
• Evaluating management override of controls.

Control Risk Assessment at Assertion Level – Section 11.60

• Assessing control effectiveness through testing.
• Mapping assurance levels to ROMM.

Risk Analysis Summary – Section 11.10

• Summarizing ROMM for each financial statement line item.

Audit Planning and Strategy – Section 12.20

• Developing an audit plan based on identified risks.
• Strategies for dealing with material and significant risks.

Planning Memorandum – Section 12.30

• Documenting audit plans and strategies for the engagement team.

Work Programs and Transactions Related to Account Balances (TRAB)

• Identifying and testing transactions related to account balances.
• Using work programs to assess materiality and risks.

Control Activities and Journal Entries – Section 11.50

• Evaluating controls over significant risks and journal entries.
• Testing the operating effectiveness of controls.

Stand-Back Requirement (ISA 315.36)

• Evaluating whether audit procedures provide sufficient evidence.
• Revising assessments if new risks emerge during the audit.

Substantive Procedures and Significant Risks (ISA 330)

• Designing substantive tests for significant risks.
• Implementing procedures based on transaction predictability.

Key Responses to Significant Risks

• Identifying and testing controls over significant risks.
• Using substantive analytical procedures and tests of details.

Summary and Conclusion of the Audit Process

• Evaluating the sufficiency of audit evidence.
• Finalizing and documenting conclusions.

Practical Case Studies and Application

• Real-world scenarios for applying ISA 315 and ISA 330 using CaseWare.
• Group exercises and discussions to reinforce learning.

• Auditors
  Second-year SAICA trainees
  
• Third-year SAICA trainees
• Fourth-year SAICA trainees
• Fifth-year SAICA trainees
  
• Audit managers
• Audit partners
  
• Engagement Quality Control Reviewers