TOPIC 1

For this video, we will have an overview of the general approach when auditing Financial Statements. As
we all know, an audit of financial statements generally begins with the financial statements prepared by
the entity’s management. Without these financial statements, there would be no audit to perform. A
general approach when auditing financial statements would require consideration of financial statement
assertions, audit procedures and audit evidence.

Some of the audit procedures used by the auditor to gather sufficient appropriate evidence include

INSPECTION, OBSERVATION, INQUIRY, CONFIRMATION, COMPUTATION, AND ANALYTICAL

PROCEDURES.

TOPIC 2

For this video, we will have an overview of the audit process and the audit activities that should be
performed in an audit process. The audit process is the sequence of different activities involved in an
audit. This audit process should include some audit activities. The first activity in the audit process is to
make a decision of whether to accept or reject an audit engagement followed by audit planning and
considering internal control. The stronger the internal control, the more assurance it provides about the
reliability of accounting data and financial statements. Next activity that should be included in an audit
process is performing substantive tests. Using the information obtained in audit planning and
consideration of internal control, the auditor performs substantive tests to determine whether the
entity’s financial statements are presented fairly in accordance with financial reporting standards. Next
activity is completing the audit and the last one is issuing a report. The emphasis and order of certain
activities may vary depending upon a particular audit.

TOPIC 3

For this video, we will focus on the qualities and characteristics a firm should consider in making the
decision whether to accept or reject the audit engagement. An important element of a firm’s quality
control policies and procedures is a system for deciding whether to accept or reject an audit
engagement. In making this decision, the firm should consider its competence, its independence, its
ability to serve the client properly, and the integrity of the prospective client’s management.

TOPIC 4

For this video, we will learn what is an engagement letter and how important it is to prepare this letter.
So after the auditor accept the audit engagement, an engagement letter should be prepared. This letter
serves as the written contract between the auditor and the client. It is in the interest of both the auditor
and the client that the auditor sends engagement letter in order to avoid misunderstanding with respect
to the engagement. This letter also documents and confirm the auditor’s acceptance of the
appointment.