This course will cover the whole audit process with a detailed look at the following:

• Objective of the auditor
• Professional judgement and professional scepticism
• Assertions
• Overall materiality vs Performance materiality
• Inquiries, analytical procedures and observations and inspection
• Information from Other Sources
• Obtaining an Understanding of the Entity and Its Environment, the
• Applicable Financial Reporting Framework, and the Entity’s System of Internal Control

• Entity and its environment
• Organisational structure and ownership
• Governance
• Business Model
• Industry factors
• Other external factors
• The Applicable Financial Reporting Framework

• Understanding the Components of the Entity’s System of Internal Control

• Control environment
• The entity’s risk assessment process
• The entity’s process to monitor the system of internal control

• Identifying and Assessing the Risks of Material Misstatement

• Assessing the risks of Material Misstatement at the Financial Statement Level
• Inherent risk
• Fraud risk
• Assessing Risks of Material Misstatement at the Assertion Level

• Relevant assertions
• Spectrum of inherent risk
• Significant Risks vs insignificant risks
• When substantive procedures alone cannot provide sufficient appropriate audit evidence
• Disclosures that may be significant
• Control Risk

• Definitions
• The information system and communication
• Control activities
• Evaluating the design, and determining implementation, of identified controls in the control activities component

• Test of Controls
• Reporting of Control Deficiencies Within the Entity’s System of Internal Control
• Revision of Risk Assessment
• Responding to the Risk of Material Misstatement in terms of the new ISA 315

• Substantive Procedures
• Substantive Procedures Related to the Financial Statement Closing Process
• Substantive Procedures Responsive to Significant Risks

• Evaluating the Audit Evidence Obtained from the Risk Assessment Procedures
• Classes of Transactions, Account Balances and Disclosures that Are Not Significant, but Which Are Material
• Audit evidence
• Engagement Team Discussion
• Documentation
• Communicating with management
• Related party testing
• Going concern
• Subsequent events
• Final/Overall analytical review
• Evaluations of misstatements
• NOCLAR and reporting responsibilities
• Deciding on the type of opinion and setting up the audit report i.r.o. the new revised ISA 700

The following Draftworx documents will be dealt with during the course:

• Pre-engagement Activities
  

• 10.00 Engagement acceptance and continuance
• 10.01 New engagement - Predecessor auditor review
• 10.02 Audit Firm independence
• 10.03 Individual team member independence declaration
• 10.04 Accounting Framework
• 10.05 Competencies and independence evaluation of Engagement team
• 10.10 Planning Materiality

• Planning Activities
  

• Section 11
• 11.05 Verification of Opening balances - New engagement
• 11.10 Opening balances - continuing engagement
• 11.15 Engagement team discussion agenda documentation
• 11.20 Review of prior year Audit report & Management report
• 11.25 Preliminary Analytical
  
  Section 12
• 12.05 Overall audit strategy
• 12.10 Understanding the nature of the entity
• 12.15 Fraud discussions
• 12.20 Agenda for discussions with Those charged with governance
• 12.25 Laws and Regulations
• 12.30 Review / Discussion of Minutes of management meetings
• 12.35 Reliance on Internal Audit
• 12.40 Entity level controls
• 12.45 IT controls
• 12.70 Revenue Fraud risk assessment
• 12.80 ISA540 considerations

• Section 13 System Notes (per cycle)
• Section 15 & 16 & 17
• 15.05 Risk Register
• 16.05 RAC Summary
• 17.05 Audit Plan
• 17.95 Risk Sign-off

• Section 18 & 19
• 18.00 Planning Sign-off
• 18.05 Revised Materiality
• 19.00 Use of Reports / Data from IT Application Systems
• 19.05 Reliance on an Expert
• 19.20 Consulting on Difficult and Contentious Matters
• 19.25 Difference of Opinion
• Section 20 Journals (as a significant risk) / Related Parties / Contingent Liabilities

• Reporting Activities / Finalisation

• 00.20 Reporting Checklist
• 01.00 Withdrawal from the engagement
• 01.05 Engagement Partner responsibility checklist
• 02.05 [Revised] Materiality summary
• 02.10 Schedule of identified misstatements
• 02.15 Final Analytical review
• 03.05 Final Fraud impact
• 03.06 Final Estimates summary
• 03.10 Other Information in the AF
• 03.15 Going Concern
• 03.20 Subsequent events
• 03.25 Reportable irregularities
• 03.30 Laws and Regulations
• 03.35 Key Audit Matters (KAM)
• 04.05 Matters for follow-up on the next audit
• 05.05 Overall Partner evaluation
• 06.05 Audit sign-off control sheet
• 06.40 Management Report (template)
• 06.45 Management Rep Letter
• 07.00 EQR
• 08.05 Audit Report