Pr 102: ASSURANCE & AUDITING

CONCEPTS & APPLICATION

Chapters 03 & 04

OVERVIEW OF
PHASE I –
Preliminary Risk-
Assessment
Pr102: ASSURANCE &
AUDITING CONCEPTS &
APPLICATION
UNIT I: OVERVIEW OF AUDIT 9
High-Level Process
Client Auditor
Working Papers
Engagement Letter
PHASE I
Engagement Audit Strategy Accepting &
Letter Detailed Audit Continuing
Plan & Procedures Clients

Audit Audit Programs PHASE

Arrangement Time Budget
Letter Work Schedule Develop
Overall Audit
II
Assessed Risks Strategy

Management Develop
Representation Detailed Audit
Plan
Pr102: ASSURANCE &
AUDITING CONCEPTS &
APPLICATION
UNIT I: OVERVIEW OF AUDIT 10
High-Level Process – Developing an Overall Strategic Plan
AUDITOR
1 Obtain client’s consent
Create the
engagement team to make inquiries from
the predecessor
auditor (if any) 3
Obtain a deeper
2
understanding of the Obtain No
entity and its ed?
environment, Yes
including Internal
Consult with the 4
Control
predecessor auditor,
review his working
Yes
papers
New
client?
Consider work 5
No
performed by parties
other than the
predecessor auditor
Pr102: ASSURANCE &
AUDITING CONCEPTS &
APPLICATION
UNIT I: OVERVIEW OF AUDIT 11
High-Level Process – Developing an Overall Strategic Plan
AUDITOR
1 Obtain client’s consent 6 8
Create the Conduct consultation Identify risks of
engagement team to make inquiries from conference with material
the predecessor partners, managers misstatement (RMM)
auditor (if any) 3 and engagement team

Obtain a deeper
2
Obtain No 9
understanding of the 7
ed? Perform other risk Develop the Overall
entity and its
assessment Audit Strategy
environment, Yes
including Internal 4 procedures, including
Consult with the analytical procedures OAS
Control
predecessor auditor,
review his working Assessed
papers Risks
Yes
New Develop
client? Detailed Audit
Consider work 5 Determine
No Plan
performed by parties Materiality Levels
other than the
predecessor auditor