Audit ch06 slides

Audit ch06 slides - Chapter 6 Preliminary Auditing...

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Chapter 6 Preliminary Auditing Planning: Understanding the Auditee
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Slide 2 • Preliminary Understanding of Auditee’s Business, • Applying Analytical Procedures to Management’s • Materiality Levels for Audit Planning • Financial Statement Assertions and Audit Objectives • Developing the Overall Audit Strategy Chapter Overview
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Slide 3 Before starting an engagement Risk management Litigation risk Quality management Quality control standards System to control client acceptance/ continuance
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Slide 4 Client Acceptance and Retention Policies Some important procedures should include…….
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Slide 5 Communication Between Predecessor and Successor Auditors Predecessor Successor Rules of Professional Conduct Required communication Confidentiality Client consent Audit files
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Slide 6 Engagement Letters When a new audit client is accepted an engagement letter must be obtained. – contract for the audit. • Standards require the auditor and management to agree on the terms of the audit engagement. – A new engagement letter should be obtained every year of a continuing audit.
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Slide 7 Time Budget The partner or manager propose a plan for the timing of the work based on previous experience and knowledge of the business. – The time budget allows the audit firm to spread its workload between interim and year-end periods. • Interim – weeks or months before the statement date. • Year-end – shortly before or after the statement date.
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Slide 8 Preliminary Understanding of Auditee’s Business, Environment and Risks Understanding the client’s business and
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This note was uploaded on 12/18/2011 for the course BUSINESS 4754 taught by Professor Khan during the Fall '09 term at Ryerson.

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Audit ch06 slides - Chapter 6 Preliminary Auditing...

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