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    Case Study 2

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    Dana
    The document discusses the planning process for an audit of a company for the year 2016. It identifies several important sources of information for audit planning, including prior year working papers, audit adjustments, budgets, and financial reports. Preliminary plans for fieldwork include interviewing staff to review the organizational chart and internal controls for revenue and payroll. The scoping letter should be distributed to key staff to identify the type of work and records needed. Throughout the engagement, the auditor should monitor staff compliance with ethical standards and take appropriate actions if needed to ensure a quality audit.

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    Case Study 2

    Uploaded by

    Dana
    86 views1 page
    The document discusses the planning process for an audit of a company for the year 2016. It identifies several important sources of information for audit planning, including prior year working papers, audit adjustments, budgets, and financial reports. Preliminary plans for fieldwork include interviewing staff to review the organizational chart and internal controls for revenue and payroll. The scoping letter should be distributed to key staff to identify the type of work and records needed. Throughout the engagement, the auditor should monitor staff compliance with ethical standards and take appropriate actions if needed to ensure a quality audit.

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    Auditing and Assurance Principles Case Study

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    The document discusses the planning process for an audit of a company for the year 2016. It identifies several important sources of information for audit planning, including prior year working papers, audit adjustments, budgets, and financial reports. Preliminary plans for fieldwork include interviewing staff to review the organizational chart and internal controls for revenue and payroll. The scoping letter should be distributed to key staff to identify the type of work and records needed. Throughout the engagement, the auditor should monitor staff compliance with ethical standards and take appropriate actions if needed to ensure a quality audit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    86 views1 page

    Case Study 2

    Uploaded by

    Dana
    The document discusses the planning process for an audit of a company for the year 2016. It identifies several important sources of information for audit planning, including prior year working papers, audit adjustments, budgets, and financial reports. Preliminary plans for fieldwork include interviewing staff to review the organizational chart and internal controls for revenue and payroll. The scoping letter should be distributed to key staff to identify the type of work and records needed. Throughout the engagement, the auditor should monitor staff compliance with ethical standards and take appropriate actions if needed to ensure a quality audit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Case 1- Preliminary Audit Conference

    With the suggestions given by the client, Ms. Amog should only follow to the extent of

    Case 2- Comprehensive Audit Planning Case (AICPA)

    The necessary preparation and planning for the 2016 audit of the Company includes the sources of
    information, the type of information, the preliminary plans and preparations for the field work and the
    actions needed to take relative to the staff assigned to the engagement.

    The sources of information in preparing the audit are the working papers of previous years that include
    permanent files for planning the materiality. This also includes the audit adjustments and difficulties
    dealt with throughout the audit, the actual time and audit budget on numerous audit parts and the
    matters of ongoing audit personnel and loan agreements. Constraints and the engagement letter that
    affect the audit of the current year as well as the preceding reports, partners and managerial
    memorandums evaluating the vital audit areas is important information for the audit. Amount
    valuations of allowance account and loan loss reserves are just as significant. This might include the aims
    and objectives identified in strategic plans; any key procedures or policies; organization charts; financial
    information such as budgets risk registers, controls and sample management reports. If the area has
    been audited in the past, it is worth reviewing the last audit report and the progress of past
    recommendations.

    Preliminary plans and preparations that the auditor should make for the field work is to inform the
    designated representative who is to conduct an interview to confirm the organization chart if it is still
    accurate and confirm the appointments with the employees in order to conduct an internal control
    review which includes the revenue and payroll with documented interview that provide valuable
    information and insight. This may make the process more efficient and can even detect areas of concern
    that weren’t previously identified.

    It is useful to distribute a copy of the scoping letter to key staff so that they have an idea of the type of
    work to be undertaken. It also helps them identify the sort of records and information that they need to
    have available when the auditors come.

    Throughout the engagement, the auditor should remain alert through observation and making inquiries
    as necessary for evidence of compliance with relevant ethical requirements by the staff. If the assigned
    staffs have not complied with relevant ethical requirements, the auditor together with those of
    authority in the firm shall determine the appropriate actions to ensure that the audits are carried out in
    compliance with the policies, professional standards and quality control. The delegation of tasks should
    be done with the emphasis of accountability and responsibility, so as to ensure that the performance is
    sufficient and the completion of work is satisfactory. The auditor should also proactively assess the
    team’s capabilities and performance during the whole of the audit and take the appropriate actions
    when necessary.

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