Lack of Appropriate Audit Evidence

Problem: Auditors often audit in the wrong direction, leading to evidence that does not corroborate the assertion being tested.
Solution: We will explore how to ensure that the direction of testing aligns with the assertions to obtain relevant and appropriate audit evidence.

Revenue

Problem: Revenue is a complex area, often leading to issues from incorrect testing direction to improper risk assessment due to the misapplication of the Financial Reporting Framework.
Solution: This section will address how to properly assess and test revenue recognition in line with the appropriate framework and client practices.
Journals
Problem: Journal entries often do not receive the necessary attention, with limited testing that fails to address underlying issues.
Solution: We will cover the correct approach to journal testing, ensuring that significant risks and motivations behind journal entries are adequately addressed.

Related Parties and Transactions Outside the Normal Course of Business

Problem: Auditors tend to focus only on disclosures, often overlooking the need to test for fraud and identify transactions outside the normal course of business.

Solution: This section will guide auditors on how to identify and test related party transactions comprehensively, ensuring all aspects, including potential fraud, are covered.

Estimates

Problem: Estimates are frequently not tested in line with auditing standards, and auditors often miss key questions that should guide their testing approach.
Solution: We will discuss how to follow a structured process for testing estimates, challenging management effectively, and ensuring compliance with standards