AUDIT FILE INDEX

CONTROL SECTIONS
A ACCOUNTS
B AUDIT PLANNING
C AUDIT COMPLETION
AUDIT SECTIONS
D POST BALANCE SHEET EVENTS AND GOING CONCERN
E INTANGIBLE FIXED ASSETS
F TANGIBLE FIXED ASSETS
G INVESTMENTS IN GROUP AND ASSOCIATED UNDERTAKINGS
H OTHER INVESTMENTS
IA STOCK
IB WORK IN PROGRESS AND FINISHED GOODS
IC LONG TERM CONTRACTS
J DEBTORS AND PREPAYMENTS
K BANK BALANCES AND CASH
L CREDITORS AND ACCRUALS
M LONG TERM LOANS AND DEFERRED INCOME
N PROVISIONS FOR LIABILITIES AND CHARGES, CONTINGENT LIABILITIES AND
FINANCIAL COMMITMENTS
O CAPITAL AND RESERVES
P DIRECT AND INDIRECT TAXATION AND DEFERRED TAXATION
QA INCOME
QB EXPENDITURE
QC PAYROLL
R RELATED PARTY TRANSACTIONS
S GROUP ACCOUNTS AND CONSOLIDATION
A ACCOUNTS
1 Final sign off
2 Final accounts
3 Audit journals
4 Tax computations
5 Letter of representation
6 Reports to management
7 Disclosure checklist
 Completed by: Date: Ref: A1

FINAL SIGN OFF

Ref Comments Initials
1 Are we satisfied that the directors’ representations can
Yes/No
be relied upon?
2 Has a post balance sheet events review been
undertaken covering the period up to the date that the Yes/No D1
audit report is being signed?
3 Ensure a signed representation letter has been A5
Yes/No
received back from the client.
4 Do the working papers and the tax computation reflect
Yes/No
the final adjustments?
5 Have all final journals been recorded and processed to
produce a closing trial balance agreeing with the Yes/No
accounts?
6 Has the final copy of the accounts been referenced to
the file to ensure all lead and support schedules reflect Yes/No
final adjustments?
7 Is the firm willing and able to seek reappointment as
Yes/No C13
auditor for the next period?
8 Ensure that the audit report provided to the company
has been signed off by the Audit Engagement Partner
in their own name for and on behalf of the firm as
required by the Companies Act 2014 section 336 and, if Yes/No
necessary, is up to date in the light of revisions to ISA
700 (Ireland) and local guidance. .

I authorise the signing of the audit report.

Signed..................................................................Audit Engagement Partner Date

......................

Engagement Quality Control Partner (if applicable)

Signed ................................................................ Engagement Quality Control Partner Date

......................
B AUDIT PLANNING

1 Audit planning control checklist

2 Independence questionnaire
3 Client meeting minutes
4 Materiality
5 Preliminary analytical review
6 Assessments of risks at the assertion level
7 Sample size calculation
8 Audit strategy memorandum
9 Timetable
10 Budget
Completed by: Date: Ref: B1
Reviewed by: Date:

AUDIT PLANNING CONTROL CHECKLIST

Initial and
Issue Ref. Comment date
1. Determine whether the financial reporting
framework to be adopted in the preparation of
the financial statements is acceptable or not.
2. Ensure that there are no specific provisions in
company legislation which prevents the firm
acting as auditor of the company because the
Audit Engagement Partner or any person in the
firm:
➢ Are an officer or servant of the company;
➢ Are a person who has been an officer or
servant of the company within a period in
respect of which accounts would fail to be
audited by the person if he or she were
appointed auditor of the company;
➢ Are a parent, spouse, brother, sister or
child of an officer of the company;
➢ Are a person who is a partner of or in the
employment of an officer of the company or
has been an officer or servant of the
company within a period in respect of which
accounts would fall to be audited by the
firm if the firm was appointed auditor of the
company;
➢ A person who would not qualify for
appointment as auditor of any other body
corporate that is a subsidiary or holding
company of the company or a subsidiary of
the company’s holding company, or would
be so disqualified if the body corporate
were a company;
➢ A person in whose name a share in the
company is registered, whether or not that
person is the beneficial owner of the share.
3. Ensure there is an up to date, signed letter of
engagement for the assignment. Consider the
adequacy of the contents particularly if any
circumstances have changed.
4. If a limitation on the scope of the auditor’s work
has been imposed by management, consider
whether the appointment can be accepted or
not.
5. Document the impact of any change in the terms
of the audit after the audit has commenced.
Ensure that it is in line with ISA (Ireland) 210.
AUDIT PLANNING CONTROL CHECKLIST

Issue Ref. Comments Initials and

date
6. Has ongoing monitoring of the business PAF 1
relationship taken place throughout the audit to
satisfy ourselves that all transactions carried out
by the client are consistent with our knowledge
of the client and their risk profile?
7. Document how the firm has considered the
adequacy of the opening balances, as required
by ISA (Ireland) 510 and the comparatives as
required by ISA (Ireland) 710, particularly if this
is the first year of audit by the firm.
8. If the firm were not the auditors in the previous
year, has consideration been given to requesting
access to the previous auditor’s working
papers? If these are requested, the findings of
the review must be documented. If it is decided
not to request access, the rationale for this
decision should be carefully explained, along
with a detailed description as to how the
adequacy of the opening balances and the other
requirements of ISA (Ireland) 510 will be
complied with and how an understanding of the
business, as required by ISA (Ireland) 315 will
be achieved.
9. Where any service organisations have been
used, ensure that the requirements of ISA
(Ireland) 402 have been followed.
10. Ensure that there is adequate consideration of
ISA (Ireland) 250 on laws and regulations and
ensure that staff are aware of the reporting
requirements of auditors under the Companies
Act 2014 specifically in relation to the committing
of Category 1 or Category 2 offences by the
company or an officer or an agent of it and
potential reporting of it to the Director of
Corporate Enforcement under Section 393.
11. If expertise in a field other than accounting or
auditing is necessary to obtain sufficient
appropriate audit evidence, consider whether to
use the work of an auditor’s expert. Ensure that
the requirements of ISA (Ireland) 620 are
followed.
12. Confirm that the team and experts who will be
used have the competence and capability to
complete the assignment.
13. Is there a requirement to communicate any
audit planning and scope matters, such as
materiality, to the client, as required by ISA
(Ireland) 701?
14. Ensure that an audit planning letter has been
sent to the client.
 Completed by: Date: Ref: B1
Reviewed by: Date:

AUDIT PLANNING CONTROL CHECKLIST

Issue. Ref. Comment Initial and

date
15. If an engagement quality control review is
required ensure that an appropriately qualified
individual has been appointed to do it.

Conclusion

Prepared by Date

Reviewed by Date
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE

This independence questionnaire is ONLY for entities which are not Public Interest
Entities (PIEs) or Other Entities of Public Interest (OEPIS).

The firm and each “covered” person are required by the Ethical Standard for Auditors
(Ireland) 2017 to be independent in the performance of the engagement. A “covered”
person is anyone in a position to influence the conduct or outcome of the engagement.
The “covered” persons for this job should all be highlighted below.

Name of Individual Position On Job Reason why they are a “covered

person”

It is also important to consider how long partners, managers and staff have been
involved in the job to prevent over familiarity and long association threats. The table
below should be completed:

Names of team members Number of years involved in Rotation to take place in

(including partner) the audit year ended
Completed by: Date: Ref: B2
Reviewed by: Date:

Issue Yes, No or N/A

1. Undue dependence on a client
Do the total fees (audit and non-audit) of this client/group of clients
regularly exceed 15 % of gross practice income?
If yes, then the audit cannot be undertaken. If fees are in excess of
15% of gross practice income but this is not regular for this client,
or the fees include a significant non-recurring element, then a hot
file review may be an appropriate safeguard.
Are the total fees of this client/group of clients between 10% and
15% of gross practice income?
If yes, then the client needs to be told about the independence
threat. In addition, independent external hot files reviews are
necessary for entities which are not eligible to apply the Provisions
Available for the Audit of Smaller Entities.
2. Overdue fees
Are there any significant overdue fees for this client?

Could these overdue fees when taken with the fees for the current
period be regarded as a loan?
Where ‘yes’ specify the value of the overdue fees:

3. Actual or threatened litigation

Is there any actual or threatened litigation between the firm and the
client?
Where ‘yes’ give details:
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE continued

Issue Yes, No or N/A

4. Associated firms – influences outside the practice
Could any pressure be exerted on the firm by associated practices or
from external sources such as bankers, solicitors or other parties?
Where ‘yes’ give details:

Is the audit undertaken on behalf of another firm of accountants?

Where ‘yes’ give details and indicate why your independence is not
compromised by this arrangement:

5. Employment, family and other personal relationships

Have you or any of your partners or staff or any family members ever
worked for the audit client?
This issue could lead to an insurmountable threat to independence.
Where ‘yes’ give details:

Has the firm entered into any agreements with the entity or any affiliates
of the entityto provide partners or employees to work for a temporary
period?
Where ‘yes’ give details:

Have any secondments been made by the audit firm?

Where ‘yes’ give details:

Have any “covered persons” been appointed as an officer or a director of

the audited entity, including a non-executive director, a member of the
audit committee or any other committee or body performing equivalent
functions or to a key management position.
Where ‘yes’ give details:
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE continued

Issue Yes, No or N/A

Do you or any of your partners or staff or any family members have
any mutual business interests with the client or with an officer or
employee of the client?
Where ‘yes’ give details:

Employment, family and other personal relationships continued

Do you or any of your partners or staff have a personal or family
relationship with any of the company owners or senior management?
Where ‘yes’ give details:

Do you or any of your staff or any family members of you or your staff
have any financial investment in the company in respect of the
following:
Any beneficial interests in shares or other investments?
Any beneficial interests in trusts?
Any trustee investments or nominee shareholdings?
Where ‘yes’ give details:

You should note that yes answers to the above question may prevent
the firm undertaking the audit.
6. Long Association Threat
Has the Audit Engagement Partner acted for the client for more than
10 years?
If ‘yes’, then suggested safeguards include hot file review, rotation of
Audit Engagement Partner , second partner review or informing the
client of the possible threat to objectivity and why you do not believe
that the threat is significant and indicating in what circumstances you
will apply safeguards e.g. if there are contentious or higher risk areas
arising.
Where ‘yes’ give details and specify the action to be taken:
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE continued

Issue Yes, No or N/A

Have any audit staff acted for the client for more than 10 years?
Where ‘yes’ give details and specify the action to be taken:

7. Voting on audit appointments

Where a partner or staff member holds shares in any capacity in an audit
client, have they voted at any general meeting of the company in relation
to the appointment, removal or remuneration of the auditors?
Where ‘yes’ give details:

8. Loans
Have you or your staff or anyone closely connected with the practice:
Made a loan to or guaranteed borrowings by the client?
Accepted a loan from the client?
Had borrowings guaranteed by the client?
Where ‘yes’ give details:

9. Hospitality
Have you or any of your staff accepted any hospitality, gifts or services
from the client which are not trivial or inconsequential?
Where ‘yes’ give details:
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE continued

Issue Yes, No or N/A

10. Provision of other services to clients
Is there any reason why the client could be perceived not to have
“informed management”?
“Informed management” are members of management who have the
authority and the capability to make independent management
judgments and decisions in relation to non audit services on the basis of
the information provided.
Justify the above assessment:

Does the firm undertake non-mechanical accounting work for the client
(e.g. writing up books of prime entry)?
Where ‘yes’ give details:

Does the firm undertake mechanical accounting work for the client (e.g.
Statutory accounts, posting for prime entry, adjustments)?
Where ‘yes’ give details:

Does the firm undertake tax planning and compliance work for the
client?
Where ‘yes’ give details:
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE continued

Issue Yes, No or N/A

Provision of other services to clients continued
Has the firm provided tax services to the client where they would
involve acting as an advocate for the entity in the resolution of an
issue that is material to the financial statements or where the
outcome of a tax issue is dependent on a future judgment by the firm
in relation to the financial statements.
Where ‘yes’ give details:

Has the firm been involved in the provision of any valuation services?
Where ‘yes’ give details:

Has the firm been involved in promoting any tax structures or

products or giving advice to the client which may not be in
accordance with well established interpretations?
Where ‘yes’ give details:

Has the firm provided Internal Audit services to the entity or a

significant affiliate of the entity during the year?
Where ‘yes’ give details:

Has the firm provided during the year any recruitment services to
the entity or a significant affiliate of the entity that would involve the
firm taking responsibility for, or advising on the appointment of any
director or employee?
Where ‘yes’ give details:

Are any other non-audit services provided to the client/group?

Where ‘yes’ give details:
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE continued

11. Are the fees for any audit or non audit services on a contingent fee
basis? Contingent fees are fees calculated on a predetermined basis
relating to the outcome or result of a transaction.
Where ‘yes’ give details:

For each threat identified above (“yes” answers) indicate what safeguard that you
have in place.

Indicate why you are happy that all ethical threats that exist above meet the “third
party test” i.e. that an objective, reasonable and informed third party knowing all the
facts and circumstances would not think that your independence was compromised.
(This person would be informed about the respective roles of an auditor, those
charged with governance and management of an entity and is not another
practitioner).

Indicate how any threats and the proposed safeguards have been communicated to
the client.
Completed by: Date: Ref: B2
Reviewed by: Date:

INDEPENDENCE QUESTIONNAIRE continued

Conclusion:

Audit Engagement Partner Date

Second Partner Conclusion (where necessary):
 Completed by: Date: Ref: B3
Reviewed by: Date:

CLIENT MEETING MINUTES

Attendees:

Date:
Venue:
Issues Reference Reviewers initials and
comments
Business risk
Record below any issues that have changed
resulting in an amendment to the permanent
file documentation.
Business objectives

Business strategy

Business risks and controls

Related Parties
Record below any changes and confirm that
management understands what a Related
Party is.

Type and purpose of transactions

 Completed by: Date: Ref: B3
Reviewed by: Date:

CLIENT MEETING MINUTES continued

Issues Reference Reviewers initials and comments
Fraud and error
Controls in place to prevent and
detect fraud and error.

How does the client discourage

fraud?

Areas where the client feels there

could be fraud and error.

Brief details of any fraud and error

encountered.

Method of communication of fraud

and error issues to employees.
 Completed by: Date: Ref: B3
Reviewed by: Date:

CLIENT MEETING MINUTES continued

Issues Reference Reviewers initials and comments
COVID-19
What impact has COVID-19 had on
the business to date?

What impact is the COVID-19

problem likely to have in the future?

What risks have arisen from COVID-

19?

Has COVID-19 had any impact on the

company’s system of internal
control?
 Completed by: Date: Ref: B3
Reviewed by: Date:

CLIENT MEETING MINUTES continued

Issues Reference Reviewers initials and comments
Accounting Estimates
How are estimates made?

What are the underlying

assumptions?

Have there been any changes

requiring a new estimate?

Preliminary analytical review

Brief details of expectations

 Completed by: Date: Ref: B3
Reviewed by: Date:

CLIENT MEETING MINUTES continued

Issues Reference Reviewers initials and comments
Going concern
Detail any concerns.

Has COVID-19 created problems in

this area?

Detail briefly the steps taken by the

client to confirm the business is a
going concern.

Reporting Deadlines

Other issues
 Completed by: Date: Ref: B4
Reviewed by: Date:

MATERIALITY SUMMARY

Percentage Expected Materiality

(see below) results level
%
Turnover

Gross assets

Profit/(loss) 10
before tax
Adjustment for
unusual items
Adjusted 10
profit/(loss)

This year € Last year €

OVERALL INITIAL AUDIT MATERIALITY SET AT

Justify why this particular level has been set

TRIVIAL ERROR LEVEL (AS PER ISA (Ireland) 450) *

Materiality Ranges:
Range of turnover / gross
assets only Percentage to be applied Materiality limits (€)
(€)
0 - 750,000 3.0% 1 - 22,500
750,001 – 1,250,000 2.5% 22,501 - 31,250
1,250,001 – 2,250,000 2.0% 31,251 - 45,000
2,250,001 – 5,000,000 1.5% 45 001 - 75,000
Over 5,000,000 1.0% Over 75,000

 Typically, this may be set between 1% and 5% of materiality

 Completed by: Date: Ref:B4.1
Reviewed by: Date:

PERFORMANCE MATERIALITY CALCULATION

ISA (Ireland) 320 requires a performance materiality assessment to be performed. The starting point
for setting performance materiality in this audit programme is by dividing the materiality level on B6
by a residual factor. It is used to help determine sample sizes. The residual factor is obtained from
the table below:

Financial Statement Level Risk PAF 11

LOW MEDIUM HIGH
LOW 1.1 1.2 1.3
Assertion Level Risk (B5) MEDIUM 1.2 1.3 1.4
HIGH 1.3 1.4 1.5

Performance materiality = Materiality

Residual factor

It must be noted however that having done the calculation the auditor must exercise their professional
judgment before deciding on the final level. The judgment should be based on understanding of the
client, robustness of internal controls and previous experience etc.

Calculation of performance materiality

Section Initial Adjustment Final
performance for Performance
Residual materiality professional materiality
Materiality factor level judgment level
Intangible fixed assets
Tangible fixed assets
Investments in group
and associated
undertakings
Other investments
Stock
Work in progress and
finished goods
Long term contracts
Debtors and
prepayments
Bank balances and cash
Creditors and accruals
Long term loans and
deferred income
 Completed by: Date: Ref:B4.1
Reviewed by: Date:

PERFORMANCE MATERIALITY CALCULATION continued

Section Initial Adjustment Final

performance for Performance
Residual materiality professional materiality
Materiality factor level judgment level
Provisions for liabilities
and charges, contingent
liabilities and financial
commitments
Capital, reserves and
statutory records
Direct and indirect
taxation and deferred
taxation
Profit and loss – income
Profit and loss –
expenditure
Profit and loss – payroll
Profit and loss –
directors remuneration
Related parties
Directors transactions

REVISION TO MATERIALITY AS THE AUDIT PROGRESSES

Document below any reasons for materiality to be amended during the course of the audit:

Initial materiality level

Final materiality level

Performance materiality level

Trivial error level

Comments:

Conclusion
 Completed by: Date: Ref: B5
Reviewed by: Date:

PRELIMINARY ANALYTICAL REVIEW

Draft figures
Ratio PriorPeriod Expected for current Comments
level for period
current
period
Gross profit %
Gross profit x 100
Turnover

Net profit %
Net profit x 100
Turnover

Debtors days
Trade Debtors x 365
Gross credit sales

Creditors days
Trade Creditors x 365
Gross purchases

Stock turnover
Trade purchases
Stock

Current ratio
Current assets
Current liabilities
Quick ratio
Current assets-Stock
Current liabilities

Any additional ratios

which are important
to this business

Preliminary conclusion
 Completed by: Date: Ref: B6
Reviewed by: Date:

ASSESSMENT OF RISKS AT THE ASSERTION LEVEL

Objective : To form an assessment of the specific audit risks in each area of the audit, by assessing
the risk inherent in the item being audited, the risk of misstatement due to weaknesses in the client’s
internal controls, and indicators that the item may be misstated, due to the results of the preliminary
analytical review. Having considered the impact of each of these three factors under each heading in
the table below, the relevant assertions for that category (e.g. existence, completeness, cut off etc)
should be listed and assessed individually as low, medium or high risk.

misstatement)
(likelihood of
Inherent risk

Justification
Control risk

Analytical

Assertion
Audit area

level risk
(L/ M/ H)
material

(L/M/H)
(L/M/H)

(L/M/H)

Intangible fixed review

assets

Tangible fixed
assets

Investments in
group and
associated
undertakings
 Completed by: Date: Ref: B6
Reviewed by: Date:

ASSESSMENT OF RISKS AT THE ASSERTION LEVEL continued

misstatement)
(likelihood of
Inherent risk

Justification
Control risk

Analytical

Assertion
level risk
Audit area

material

(L/M/H)
(L/M/H)

(L/M/H)

(L/M/H)
review
Other investments

Stock

Work in Progress

Long Term
Contracts
 Completed by: Date: Ref: B6
Reviewed by: Date:

ASSESSMENT OF RISKS AT THE ASSERTION LEVEL continued

misstatement)
(likelihood of
Inherent risk

Justification
Control risk

Analytical

Assertion
level risk
Audit area

material

(L/M/H)
(L/M/H)

(L/M/H)

(L/M/H)
review
Debtors

Bank balances and

cash

Creditors and
accruals

Provisions and
charges,
contingencies and
financial
commitments
Income
Taxation
Reserves
Audit area

Capital and
Reviewed by:
Completed by:

Inherent risk
(likelihood of
material
misstatement)
(L/M/H)
Date:
Date:

Control risk
(L,M,H)

Analytical review
(L/M,H)
ASSESSMENT OF RISKS AT THE ASSERTION LEVEL continued

Assertion level risk

(L/M/H)

Justification
Ref: B6
 Completed by: Date: Ref: B6
Reviewed by: Date:

ASSESSMENT OF RISKS AT THE ASSERTION LEVEL continued

misstatement)
(likelihood of
Inherent risk

Justification
Control risk

Analytical

Assertion
level risk
Audit area

material

(L/M/H)
(L/M/H)

(L/M/H)

(L/M/H)
review
Expenditure

Payroll

Related Party
Transactions
 Completed by: Date: Ref: B6
Reviewed by: Date:

ASSESSMENT OF RISKS AT THE ASSERTION LEVEL continued

Summarise below all medium and high risk assertions and ensure that these are transferred to the
schedule of significant risks.

Audit Area Relevant Assertion Confirm transferred

Assertion Level Risk to schedule of
(M/H) significant risks on
PAF 13

Conclusion
 Completed by: Date: Ref:B7
Reviewed by: Date:

SAMPLE SIZE CALCULATION

All items above the performance materiality level in any population must be chosen for every test
performed.

If substantive (detailed) analytical review and/or tests of control have been performed on this population,
and the results provide a high level of confidence in the financial statement assertion being tested, the
sample sizes may be reduced.
When designing an audit sample, you must always consider the purpose of the audit procedure and the
characteristics of the population from which the sample will be drawn before deciding which items to
select in the sample.

Balance Sheet Items Sample Size

Sample size = Residual Population (Balance being tested less items above performance
materiality)
Performance Materiality

Note: If the table below gives a lower answer than the above, then the table below should be used.

Financial Statement Level Risk PAF 11

LOW MEDIUM HIGH
LOW 20 24 30
Assertion Level Risk B5 MEDIUM 24 30 34

HIGH 30 34 40

Profit and Loss Sample Size

Sample size = Residual Population (Balance being tested less items above performance
materiality)
Performance Materiality

Note: If the table below gives a lower answer than the above, then the table below should be used.

Financial Statement Level Risk PAF 11

LOW MEDIUM HIGH
 LOW 20 24 30
Assertion Level Risk B5 MEDIUM 24 30 34

HIGH 30 34 40
 Completed by: Date: Ref:B7
Reviewed by: Date:

SAMPLE SIZE CALCULATION

Below is listed a suggested methodology for selecting the sample for testing:

Number of items
Items above materiality level
Key items below performance materiality
level
Random item to ensure all items have a
chance of being chosen
Remainder of sample
Total sample size