TABLE OF CONTENTS

ICPAK AUDIT MANUAL

DISCLAIMER The table will be formatted and updated in the final version including a complete list
of all the forms and audit programmes with the relevant document reference numbers.

PART A: AUDIT OBJECTIVES, RESPECTIVE

RESPONSIBILITIES AND AUDIT FILE
CONTENTS PART B: QUALITY CONTROL AND CLIENT
ACCEPTANCE
1. INTRODUCTION
4. ETHICAL REQUIREMENTS AND QUALITY
1.1. Scope of the manual CONTROL IN RELATION TO AUDIT
1.2. Structure of the manual ENGAGEMENTS (INCORPORATING ISQC 1
1.3. Matters not dealt with in the ISA 220 and COE)
manual
1.4. Glossary of terms 4.1. Ethical requirements in respect to audit
engagements
2. AUDIT OBJECTIVES AND RESPECTIVE 4.2. Quality control
RESPONSIBILITIES (INCORPORATING ISA 4.3. Engagement quality control
200) review
4.4. Engagement quality control
2.1. Objectives and general principles of an reviewer
audit 4.5. Consultations
2.2. Stages of an audit 4.6. Resolving differences in
2.3. Use of standard forms and opinions
programmes
2.4. Responsibility for the financial Appendices:
statements  Annual independence confirmation
2.5. Responsibilities of the engagement team
5. AUDIT ENGAGEMENT (INCORPORATING
3. AUDIT FILES AND WORKING PAPERS ISQC 1, ISA 210 and ISA 220)
(INCORPORATING ISA 230)
5.1. Client acceptance
3.1. Types of audit files 5.2. Terms of audit engagement and changes
3.2. Layout of audit files thereto
3.3. Working papers contents 5.3. Continuation
3.4. Ownership, safe custody and retention of 5.4. Ceasing to act
working papers and files 5.5. Non-audit engagements

Appendices: Appendices:
 Current audit file index  Specimen audit engagement letter
 Permanent audit file index
PART C: KEY AUDIT AREAS

6. PLANNING (INCORPORATING ISA 300)

6.1. Planning
6.2. Key task in the planning
process
6.3. Time costing

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6.4. Time budgeting  Audit procedures to address the assessed
risk of fraud
Appendices:  Circumstances that indicate possibility of
 Matters that an auditor should consider in fraud
developing an audit strategy
 Contents of the audit plan

7. ACCOUNTING SYSTEMS AND CONTROLS

(INCORPORATING ISA 315 and 402) 9. AUDITORS RESPONSIBILITY TO CONSIDER
LAWS AND REGULATIONS
7.1. Risk assessment (INCORPORATING ISA 250)
7.2. Assessment of systems and controls at
the planning stage 9.1. Introduction
7.3. Assessment of the control environment 9.2. Considering compliance with law and
7.4. Recording and assessment of the regulations at the planning stage
accounting and information systems 9.3. Audit procedures
7.5. Inadequate records or systems 9.4. Reporting
7.6. Types of controls and identifying key 9.5. Withdrawal from the
controls engagement
7.7. Framework for assessing controls
7.8. Detail testing of internal controls 10. REPORTING ON COMPLIANCE WITH
7.9. Areas of potential control weaknesses INTERNATIONAL FINANCIAL REPORTING
7.10. Drawing conclusions on tests of internal STANDARDS (INCORPORATING IAPS 1014)
controls
10.1. Introduction
Appendices: 10.2. Audit process
 Factors to consider in understanding an
entity’s control environment 11. MATERIALITY (INCORPORATING ISA 320)
 Internal control components
 Conditions and events that may indicate risk 11.1. Definition
of material misstatement 11.2. Relationship between materiality and risk
 Management letter 11.3. Overall and individual materiality
11.4. Influences and other considerations
8. AUDITOR’S RESPONSIBILITY TO including fraud on setting materiality
CONSIDERING FRAUD (INCORPORATING 11.5. Evaluating the effects of misstatements
ISA 240)
Appendices:
8.1. Introduction  Guidance on setting materiality
8.2. Characteristics of fraud
8.3. Professional scepticism 12. AUDIT EVIDENCE (INCORPORATING ISA
8.4. Audit procedures in relation to 500, 501 AND 505)
fraud
8.5. Evaluation of audit evidence 12.1. Definition
8.6. Reporting 12.2. Sufficient and appropriate
evidence
Appendices: 12.3. Use of assertions in obtaining audit
 Examples of fraud risk factors evidence
12.4. Audit techniques

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12.5. Designing audit procedures for obtaining 15.3. Other consideration in the design of
evidence substantive tests
12.6. Attendance at physical inventory 15.4. Selection of substantive tests
counting 15.5. Type of substantive tests
12.7. External confirmations
12.8. Procedures regarding litigation and claim

13. OPENING BALANCES AND

COMPARATIVES (INCORPORATING ISA 510 16. SAMPLING (INCORPORATING ISA 530)
and 710)
16.1. Definition
13.1. Audit of opening balances on continuing 16.2. Factors determining the use of sampling
audits 16.3. Overview of the sampling
13.2. Audit of opening balances where prior process
years not audited 16.4. Statistical verses non-statistical sampling
13.3. Audit of opening balances where 16.5. Documenting the sampling
previous year audited by another firm process
13.4. Comparatives 16.6. Methods of selecting the
sample
14. ANALYTICAL PROCEDURES 16.7. Planning the sample
(INCORPORATING ISA 520) 16.8. Setting the sample size
16.9. Performing the audit process
14.1. Nature and purpose of analytical 16.10. Evaluating the results
procedures
14.2. Types of analytical techniques Appendices:
14.3. Analytical procedures as risk assessment  Factors influencing sample size for test of
procedures controls
14.4. Analytical procedures as substantive  Factors influencing sample size for
procedures substantive tests
14.5. Approach to using analytical review as
substantive procedures 17. AUDIT OF ACCOUNTING ESTIMATES
14.6. Recording of analytical review (INCORPORATING ISA 540)
14.7. Analytical risk
14.8. Analytical procedures at 17.1. Accounting estimates
conclusion 17.2. Audit procedures to be adopted on test of
accounting estimates
Appendices: 17.3. Evaluation of results
 Guide to drawing conclusions from analytical
procedures 18. AUDITING FAIR VALUE MEASUREMENTS
 Key business ratios AND DISCLOSURES (INCORPORATING ISA
545)
15. SUBSTANTIVE TESTING OF
TRANSACTIONS AND ACCOUNT 18.1. Introduction
BALANCES 18.2. Understanding the entities approach for
determining fair value
15.1. Definition 18.3. Audit approach and review of
15.2. Directional testing assumptions

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18.4. Evaluating results  Specimen letter of representation

19. RELATED PARTIES (INCORPORATING 1SA 23. USING OR RELYING ON THE WORK OF
550) OTHERS (INCORPORATING ISA 600, 610
AND 620)
19.1. Introduction
19.2. Existence and disclosure of related 23.1. Using the work of another
parties auditor
19.3. Audit approach 23.2. Considering the work of internal
19.4. Evaluating results audit
20. SUBSEQUENT EVENTS AND 23.3. Using the work of other offices within the
CONTINGENCIES (INCORPORATING ISA firm
560) 23.4. Using the work of an expert
24. COMPLETION AND REVIEW
20.1. Definition of subsequent event
20.2. Audit procedures 24.1. Objectives
20.3. Recording and conclusion 24.2. Completion of audit areas
20.4. Action after the audit report is signed but 24.3. Points for the partners attention
before the financial statements are 24.4. Review of financial statements
issued 24.5. Review of file
20.5. Action after the financial statements are 24.6. Overall audit conclusion
approved by the members 24.7. Second partner review
20.6. Contingencies 24.8. Effectiveness review

21. GOING CONCERN (INCORPORATING ISA 25. AUDIT REPORT (INCORPORATING ISA 700
570) AND 701)

21.1. Definition 25.1. Basic elements of the auditor’s

21.2. Respective responsibilities of the report
management and the auditor 25.2. Audit Opinion
21.3. Audit approach 25.3. Types of audit opinions
21.4. Audit evidence 25.4. Issuing financial statements
21.5. Additional audit procedures when events 25.5. Signing the financial statements
or conditions are identified
21.6. Audit conclusion Appendices:
 Audit report examples
Appendices:  Statement of directors’ responsibilities
 Letters of support or subordination examples

22. MANAGEMENT REPRESENTATIONS 26. OTHER INFORMATION ISSUED WITH

(INCORPORATING ISA 580) AUDITED FINANCIAL STATEMENTS
(INCORPORATING ISA 720)
22.1. Introduction
22.2. Representations as audit 26.1. Introduction
evidence 26.2. Considerations
22.3. Documentation
PART D: OTHER AUDIT AREAS
Appendices:

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27. COMMUNICATION OF AUDIT MATTERS  Audit planning checklist
WITH THOSE CHARGED WITH  Time budgets
GOVERNANCE (INCORPORATING ISA 260)  Standard audit ticks
 Materiality
27.1. Introduction  Risk identification programme
27.2. Relevant persons  Analytical review programme
27.3. Audit matters of governance interest to
 Knowledge of client’s business and
be communicated
accounting systems review
27.4. Timing and forms of
 Basic control questionnaire
communication
27.5. Management letter  Permanent audit file review checklist

Appendices: GENERAL PURPOSE AUDIT PROGRAMMES

 Management letter
 Opening balances, comparatives and trial
28. AUDIT OF CONSOLIDATED FINANCIAL balance
STATEMENTS  Intangible assets
 Property, plant and equipment
28.1. Introduction  Investment property
28.2. Planning  Investments in subsidiaries and associates
28.3. Execution  Financial assets
28.4. Review and completion  Biological assets
28.5. Other considerations  Inventories
28.6. Audit report  Trade and other receivables
 Cash and Bank Balances
Appendices:  Related party transactions and balances
 Group audit instructions  Trade and other payables
 Acknowledgement of receipt of audit  Borrowings
instructions  Provisions for liabilities and charges
 Specimen audit report  Current tax
 Subsequent events clearance  Deferred tax
 Equity
PART E: AUDIT FILE CONTENTS  Commitments and contingencies
 Directors’ emoluments and transactions
ADMINISTRATION
 Cash flow statement
 Audit finalisation checklist
 Income
 Partners review checklist
 Expenditure
 Summary of outstanding issues
 Summary of unadjusted errors
OTHER AUDIT PROGRAMMES
 Points carried forward to subsequent audit
 Subsequent events review programme  Subsequent events review
 Going concern review programme  Going concern review

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