Significant audit issues audit approach ie combined

Info icon This preview shows pages 31–34. Sign up to view the full content.

View Full Document Right Arrow Icon
Significant audit issues: Audit approach (i.e., combined approach vs. substantive approach Areas of significant financial statement risk (i.e., audit of FV, significant management estimates, related party transactions) Audit materiality and materiality base Involvement with external/internal expert Testing the operating effectiveness of controls Additional use of analytical procedures Overall responses to risks, nature, timing and extent of work Any concerns about management’s integrity, going concern, litigation, etc. Extent of work on non-risk areas Results of 5D Preliminary Analytic Review Independence issues/concerns Other significant audit issues
Image of page 31

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

View Full Document Right Arrow Icon
Staffing issues and other engagement issues Changes in nature of the engagement Appropriate experience Industry knowledge Timing of file reviews Budget Deadlines Use of specialist Timing of audit visits See Planning Memo 6. Document discussions with and amongst team members regarding the susceptibility of statements to material misstatement due to risks and the importance of maintaining professional skepticism, notwithstanding honesty and integrity in past experience with management and those charged with governance. Financial statements items that might be susceptible to material misstatement due to fraud External and internal factors that might create incentives/pressures, provide opportunities, or enable rationalization of fraud Nature and risk of management override of controls Response to the susceptibility of the client’s financial statements to material misstatement due to fraud Importance of maintaining an appropriate attitude of professional skepticism throughout the audit when considering the risk of material misstatement due to fraud Focus on the financial statement areas vulnerable to fraud presuming that management or employees were inclined (either because of incentives/pressures or attitudes/rationalizations) to perpetrate fraud Internal control weaknesses within the organization Refer to “What to discuss amongst the engagement team” in Implementation Guide #29 for details on topics for discussion. See Planning Memo 7. Document action steps Describe Assigned to: Deadline Bank confirmations Cash Expenses Revenues Merchandise inventories AR Prepaids and deposits PPE AP Chiu & Weisserman LLP Audit Program Independence Checklist Client: Dollarama Inc.
Image of page 32
Client #: 450165 Year/Period End: January 29, 2012 Before any work commences, the Independence Checklist must be completed for every audit or review engagement, and signed off by the Assurance Specialist-Full/Review. The Checklist is to be considered part of Engagement Acceptance & Continuance, and should be completed by the engagement Manager, or by the Senior Accountant preparing the engagement file, if a Manager is not part of the engagement team. Please refer to Lotus Notes database Chiu & Weisserman Policies & Guidelines>Operations>Independence for additional information.
Image of page 33

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

View Full Document Right Arrow Icon
Image of page 34
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern