New terminology, concepts and requirements

• New assertions and combinations of assertions
• New risk assessment procedures (RAP) to obtain an understanding of the entity and its environment
• Document the sources of information from which the understanding was obtained
• Class of transaction or account balance ("COTAB")
• Individual Account balance, class of transaction and other disclosure ("COTABD")
• Significant classes of transactions, account balances and disclosures (“SCOTABD)
• Transactions related to account balances (“TRAB”)
• Relevant assertions
• Controls to be identified for purposes of evaluating the design of a control and determining whether the control has been implemented
• Identification of the risk of material misstatement at the assertion level for COTABD and then assess only the identified risks of material misstatement at the assertion level
• Consideration of whether automated tools and techniques should be used to assist with obtaining an understanding of the entity and its environment and to perform risk assessment procedures.
• Extent of work needed for indirect and direct controls
• Use of inherent risk factors
• Spectrum of inherent risk
• Likelihood and magnitude of a possible misstatement on a range from higher to lower, when assessing risks of material misstatement
• “Stand-back" provision to evaluate the completeness of SCOTABD
• Design and perform substantive procedures for each material COTABD
• Substantive procedures for SCOTABD, i.e., those with relevant assertions
• Assertions to be tested for material COTABD.

The following sections in Draftworx will be discussed

Engagement team setup

• 10.00 Engagement acceptance and Continuance
• 10.04 Accounting framework
• 10.10 Planning materiality
• 10.15 Audit type selection
  
• 10.20 Identification of audit sections
  
  
  

Planning and Risk Identification

• 11.25 Preliminary analytical procedures
  
• 12.05 Overall audit strategy
  
• 12.10 Understanding the entity
  
• 12.15 Fraud discussion
  
• 12.40 Entity-level controls
  
• 12.45 General IT controls
  
• 12.70 ISA 240 considerations
• 12.95 Risk identification sign-off
  
  

Risk assessment per component (RAC)

• 12.05 Fraud RAC
  
• 16.05 Business RAC
  
  

Audit plan

• 17.00 Risk assessment summaries
• 17.05 Audit plan
  

This course is suitable for everyone who has a very good understanding of planning the audit on the Draftworx methodology.

We recommend that all partners and mangers attend this course