L3 Notes_Part_4 - prior year's W/P, hire expertise,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Planning Phase 1. Accept Client & initial planning 2. Understand the client’s business and industry 3. Assess Client business risk 5. Set Materiality and Acceptable Audit Risk 4. Preliminary Analytical Procedures 6. Develop Overall Audit Plan and Audit Program Arens, Elder Beasley 6. Assess fraud risk
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. Understanding Client’s Business A. Knowledge of industry 1. factors to consider? ability and interest to obtain capital, consumers, suppliers competitors, technology and political risks, Seasonality/ Cyclical stage in life cycle of industry strategic position, factors critical to success 2. Sources of Information AICPA industry audit guides, textbooks, technical magazines,
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: prior year's W/P, hire expertise, internet search engine B. Obtain Background Information 1. Tour the facilities visualize assets know layout in order to ask questions 2. Review the client's policies and procedures, organization chart, bylaws 3. Identify related parties (AU 334) 4. Identify need for a spet (AU 336) W.R. Knechel Risk Evaluation Risk Evaluation Strategic Analysis Organizational Business Models External Threat Analysis Strategic Business Risks Residual Risks Implications? Process Analysis Process Business Risks Process Maps Internal Threat Analysis Assurance about Current Conditions The Risk Assessment Process What do you do with the knowledge obtained?...
View Full Document

Page1 / 3

L3 Notes_Part_4 - prior year's W/P, hire expertise,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online