Course Outline
1. Introduction and Agenda Overview
• Overview of course content, objectives, and expected outcomes.
2. Terminology and Key Concepts
• Definitions and essential terminology used in CaseWare and ISA standards.
3. CaseWare Probe Methodology
• Overview of CaseWare Probe tools for planning and executing audits.
4. 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.
5. Responses to ROMM (ISA 330)
• Designing audit procedures to address identified risks.
• Tailoring audit strategies based on assessed risks.
6. Professional Skepticism in Auditing
• What is Professional Skepticism?
o The importance of skepticism to detect fraud and error.
o Avoiding bias towards corroborative evidence.
• Key Elements of Skepticism:
o Questioning mind.
o Contradictory information.
o Trust Nobody, Ask, Show, Inspect, Document.
• Practical Application:
o Assessing the reliability of client-prepared schedules.
7. Professional Judgment in Auditing
• Defining Professional Judgment:
o Making informed decisions using principles, experience, and available data.
• Application:
o Substantiating conclusions with documented evidence.
o Using judgment to determine significant risks and responses.
8. Documentation in CaseWare Probe
• Documentation Requirements:
o Ensuring consistent, concise, and complete audit documentation.
• COTAB and COTABD:
o Class of Transaction or Account Balance (COTAB).
o Significant Classes of Transactions, Account Balances, and Disclosures (SCOTABD).
9. Assertions and CaseWare Settings
• Management Assertions Overview:
o Completeness, Existence, Rights and Obligations, Accuracy, Cut-Off, Presentation, and Disclosure.
• Assertions in CaseWare:
o Mapping assertions to risks and controls.
10. Engagement Evaluation (ISA 315) – Section 10.20
• Desired audit risk levels and planning for going concern risks.
• Evaluating user impact on audit planning.
11. Materiality Assessment (ISA 315) – Section 10.60
• Determining overall materiality, performance materiality, and trivial thresholds.
• Revising materiality during the audit process.
12. Risk Assessment Procedures (RAP)
• RAP Elements:
o Inquiries, analytical procedures, observation, and inspection.
• Understanding the Entity and Environment:
o How to document inquiries and responses from management.
13. Types and Volumes of Transactions (ISA 315) – Section 10.51
• Assessing transaction patterns and volume for audit planning.
• Tailoring work programs using CaseWare.
14. Analytical Review Procedures (ISA 315) – Section 10.52
• Identifying anomalies through analytical procedures.
• Creating expectations for account balances.
15. Understanding Accounting Estimates – Section 10.53
• Evaluating estimates for bias or misstatements.
• Documenting estimation models and assumptions.
16. 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.
17. Risk of Material Misstatement (ROMM) Overview
• Identifying and assessing ROMM due to error or fraud.
• Distinguishing between inherent risk and control risk.
18. System of Internal Control – Section 11.30
• Evaluating the control environment and governance structure.
• Identifying control deficiencies and monitoring processes.
19. Fraud Risk Assessment – Section 11.25
• Assessing incentives, opportunities, and rationalization for fraud.
• Evaluating management override of controls.
20. Control Risk Assessment at Assertion Level – Section 11.60
• Assessing control effectiveness through testing.
• Mapping assurance levels to ROMM.
21. Risk Analysis Summary – Section 11.10
• Summarizing ROMM for each financial statement line item.
22. Audit Planning and Strategy – Section 12.20
• Developing an audit plan based on identified risks.
• Strategies for dealing with material and significant risks.
23. Planning Memorandum – Section 12.30
• Documenting audit plans and strategies for the engagement team.
24. 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.
25. Control Activities and Journal Entries – Section 11.50
• Evaluating controls over significant risks and journal entries.
• Testing the operating effectiveness of controls.
26. Stand-Back Requirement (ISA 315.36)
• Evaluating whether audit procedures provide sufficient evidence.
• Revising assessments if new risks emerge during the audit.
27. Substantive Procedures and Significant Risks (ISA 330)
• Designing substantive tests for significant risks.
• Implementing procedures based on transaction predictability.
28. Key Responses to Significant Risks
• Identifying and testing controls over significant risks.
• Using substantive analytical procedures and tests of details.
29. Summary and Conclusion of the Audit Process
• Evaluating the sufficiency of audit evidence.
• Finalizing and documenting conclusions.
30. Practical Case Studies and Application
• Real-world scenarios for applying ISA 315 and ISA 330 using CaseWare.
• Group exercises and discussions to reinforce learning.
