Pre-
Planning Substantive Completing
planning
Phase
Phase
Pre-planning Phase
(preliminary engagement
activities)
Primary • Not to be associated with
Objective
integrity issue and to check
if the entity is auditable.
• Accept the audit client (if
new) or continue.
• Evaluation of both the
Auditor’s qualification and
Client’s integrity and
auditability.
Completing the Audit
Primary • To assess the auditor in
Objective
assessing conclusion
reached is consistent with
evidence gathered.
• Wrapping up procedures
• Conclusions reached are
reviewed and overall
opinion is formed.
Audit
Procedures the Audit
Planning Phase
(including evaluation of Internal
Control)
• Preliminary Risk &
Materiality assessment
• Obtaining detailed
knowledge about the
client/entity (understanding
the business).
• Determining the nature,
timing, and extent of audit.
• Performing overall audit
strategy, audit plan and audit
program.
• Understanding and
evaluating internal control.
AR = IR x CR x DR
Audit Report Issuance
• Communication of the
auditor’s opinion to various
intended users.
• Preparation and Issuance of
Audit Report regarding FS
fairness.
Post-Audit
Report Responsibili
Issuance ties
Substantive Procedures
(evidence gathering phase)
• To check if the FS really
complies with the Applicable
Accounting Framework (PFRS,
PAS, US GAAP).
• Either Analytical Procedures
and/or Test of Details of –
a. Transactions
b. Account balances
c. Disclosures
Post-Audit Responsibilities
• Assessment and Evaluation of the
Audit services quality rendered to
client.
• Doing procedures which identify
areas for improvement (current
and future audit engagement)
Angela T.
 1. Risk Assessment Procedures
a. Understanding the business
b. Undertstanding the internal control
c. Assess the risk of material mistatement
Major/General (fraud/error)
2. Test of Controls
3. Substantive Procedures
a. Test of Details
b. Analytical Procedures
Audit Procedures

1. Inspection of records or documents

2. Inspection of tangible assets
3. Observation
4. Inquiry
Specific
5. Confirmation
6. Recalculation
7. Reperformance
8. Analytical Procedures

AE from different sources or of AUDIT EVIDENCE

different nature may often be Sufficient Appropriate Evidence
relevant to the same assertion.

Information contained in the

Other information (Other
accounting records underlying in
corroborating evidences)
the FS

1. Minutes of the meetings

1. Book of accounts (accounting 2. Confirmation to third parties
records) 3. Analyst's reports
2. Invoices, contracts, OR, 4. Comparable data about
agreements, voucher competitors
3. Reconciliations, computations 5. Control manuals
etc. 6. Other important corroborating
evidences

Angela T.
Angela T.