TRAINING AUDIT I

Audit Competence Awakening

PHASES

PHASE I PRE ENGGAGEMENT,

GATHERING AUDIT PLANNING
INFORMATION AND RISK ASSESSMENT

INHERENT RISK,
PHASE II
CONTROL RISK, FRAUD RISK,
RISK ASSESSMENT
RISK ASSESSMENT, AUDIT STRATEGY

TEST OF CONTROL,
PHASE III
ANALYTICAL PROCEDURES,
RISK RESPONSES
SUBSTANTIVE TEST OF DETAILS

PHASE IV AUDIT COMPLETION

REPORTING AND AND
COOMUNICATION ISSUE AUDIT REPORT
PHASE IV – AUDIT COMPLETION AND ISSUE
AUDIT REPORT

REVIEW CONTINGENT LIABILITIES

AND COMMITMENT

REVIEW SUBSEQUENT EVENTS AND

GOING CONCERN

ACCUMULATED FINAL EVIDENCE AND

CLIENT REPRESENTATION LETTER

EVALUTION FINAL RESULT/

AUDIT SUMMARY MEMORANDUM

FORM OPINION AND ISSUE

AUDIT REPORT

ISSUE MANAGEMENT LETTER

REVIEW CONTINGENT LIABILITIES
AND COMMITMENT

 CERTAIN CONTINGENT LIABILITIES THAT WILL BE

AUDITOR’S ATTENTION:
1. PENDING LITIGATION OF PATENT RIGHTS,
PRODUCTS, OR OTHERS.
2. DISPUTE WITH TAXES.
3. PRODUCT WARRANTY.
4. DISCOUNTED NOTES RECEIVABLE.
5. LIABILITIES COLLATERAL.
6. UNSED L/C FACILITIES.

 COMMITMENT IS THE AGREEMENT TO PERFORM

WITH A AGREED CONDITION IN THE FUTURE.
 REVIEW SUBSEQUENT EVENTS AND
GOING CONCERN

 AUDITOR SHOULD REVIEW EVENTS INCURRED IN BETWEEN

DATE OF BALANCE SHEET AND THE DATE OF AUDIT REPORT.

 THERE ARE TWO TYPES OF SUBSEQUENT EVENTS TO BE

CONSIDERED:
1. HAVE A DIRECT EFFECT TO THE FINANCIAL STATEMENTS
AND REQUIRES ADJUSTMENTS
2. DO NOT HAVE ANY DIRECT EFFECT TO FINANCIAL
STATEMENTS BUT REQUIRES DISCLOSURES.

 GOING CONCERN - EVENTS OR CONDITIONS THAT MAY CAST

SIGNIFICANT DOUBT ON THE ENTITY’S ABILITY TO CONTINUE AS
A GOING CONCERN. IN SO DOING, THE AUDITOR SHALL
DETERMINE WHETHER MANAGEMENT HAS ALREADY
PERFORMED A PRELIMINARY ASSESSMENT OF THE ENTITY’S
ABILITY TO CONTINUE AS A GOING CONCERN
ACCUMULATED AUDIT FINAL EVIDENCEEVIDENCE
AND CLIENT REPRESENTATION LETTER

 ACCUMULATED AUDIT FINAL EVIDENCE:

1. FINAL ANALYTICAL PROCEDURES AS FINAL
REVIEW.

2. CLIENT REPRESENTATION LETTER.

OBJECTIVES:
i. TO EMPHASIS MANAGEMENT'S
RESPONSIBILITY FOR ASSERTIONS IN
FINANCE STATEMENTS.
ii. TO DOCUMENT MANAGEMENT’S
INFORMATION TO ALL ASPECTS OF
QUESTIONS DURING THE AUDIT PROCESS.
FINAL EVALUATION

 FINAL EVALUATION WILL INCLUDE AUDIT

CONCLUSION.
 AUDITOR SHOULD ASSESS THE APPROPRIATE AND
SUFFICIENCY AUDIT EVIDENCE IN ACCORDANCE
WITH AUDITING STANDARDS AND FINANCIAL
STATEMENTS PROVIDED IN ACCORDANCE WITH
FINANCIAL REPORTING STANDARDS
CONSISTENTLY.
 WORKING PAPER MUST BE REVIEWED.
 DOCUMENT IN AUDIT SUMMARY MEMORANDUM.
ISSUE AUDIT REPORT AND MANAGEMENT
LETTER

 AUDIT REPORT SHOULD BE REVIEWED WHETHER

CONSISTENT WITH APPROVED DRAFT

 MANAGEMENT LETTER AND REPORTABLE

CONDITION IS TO COMMUNICATE WITH
MANAGEMENT OR TOCG THE PROBLEMS AND
INTERNAL CONTROL STRUCTURE DISCOVERED
DURING THE AUDIT AND RECOMMENDATION.