CHAPTER FOUR AUDIT PLANNING AND DOCUMENTATION 41 tnrodetion Whsof eat mporance ht anault & pumed in advance beease: Ge ended ene of ahiovig the aft tecigues mst be established + Gesalt canbecorsold and dreced ‘+ emon canbe fewed onto exalt risk areas + ay poi probins canbe ese as ext 38 possble tte work can then ‘be conplted ecomomy and 10 tinescak requtemets pling aye Fporact sage of i aule ease # les dec the he of ts aa "imig! cia desipre «pa say ao deca) approach fr ced ey de of Sal Te eae, TOE Room Halt ae nd ye he ‘Sut oping wae yack hott eage 5) Spy tte oat ©) sates See nth tee @) loowkdge ofthe buses. ©) comenal enionnea 2 tod of ecun Pemacio ant 2) poneg rc, bites of panning sec ta Soe fs eng cee ta cal sates may be mised Sede to are OF HK tae Sree iing ps spe SPE a a Be 9 Sere Eat spin nbn Sew ay “ = Maas 8) eth fat pl od seis * 2 Ewen dat de wok Scope cee 2 proper ssigmnen of work asa ©) soordraon af work done by ot soo 9) Soimting reve, 7 0 lon an expr ang 2 strategies re are bree approaches fase, Peeantive approach Ths & isaly adopied fr te sult of an i Seber where the txcmal stems ae weck and keh i roel ‘0.3 chen’ accounts and tax conputions (both the copies of kes sent and rgal ites received) were the propery of the cent on the basis tht sccoutans bad been acting as agents forthe chet fr the purpose of sete wih the Tnhnd Reveme the chen's x fibiy. Where a back duty repor. ¢ ‘sbmited to th Inind Revere by the member, onthe basi tht the members cing. a8 a pricpal the scheiuits supporting the repor. if mot sen with te ‘epor, remo th end prodet and so beng fo the mene the work t0 be done is to gre tx advice, the member & acting a provfal and leer. or documents ghng tat advice bebng Io the chet However, dra memoranda, mois ind comespondeace wih, or example soletors in conection wi hat work beg othe ment Communications between a member and his Client? Leter rsched by # rember fom hs cht belong tothe member.” A member's copy of my. eet writen to his clint & made Solty fr ks own purposes and ake helms tothe rmeniber (Re Wheaterft (1977), 6 Ch.D97). "A mener’s noes ofauerane a answers hotween the best and he menber hone tothe mcnBer, Communications. with Third Parties: Onnenhip of copes ef conmasicaties between a member and thn pars depend on the hatin ene imener and hs cin. Where the menber & an ast Ui cops Kang chien (see (} above as 10 EX conesponiece) On te ober al ots member & acting as prbeial ti probubl tut the cous woul! hu) Gopi bebo the ener. ‘This woul ae doses which mM end produet oft: mestber’s Wok, fo amp: 2 Docunents confming oF oiberwic the balance of an accouy Dame cee conor be et Fislteckote - YY Zh yee docu Hh Oe mene st by be om 7 ‘out his duties as principal These would nommily inch 20 gece wen be tt el ty ko comes Inland Revenve: Rezaing mendes’ wor pipes. Wise gost 0 acd aad mt of spel ston gen fe Berea ee Oe chat wi 2 ft Ts Mapes Sei esd me ies fe tp 9 ok $a 1970 102 pnd Revere, The Bou ako ts de rit w cal Sx eb te Boar ie avaible fr iepecton under s 20 of tt Ac We 2 eet 1.00 Ta a hed hock dy ers Be stm) chert MOT see the member's working papas eg that eo Ls A tan Tom pa, ee en eee dee ts nee ok ees dew a ak acs th eer wo fr ab tse mm Bele he ema eb 0 wee an ene tose Pape 10 he nin Revene. Howse he meer 8 aye accounts » ot se oe nme! ein SB ia ted ‘Requests are made ea vo or Han Reems 2 hy ae mt ell a7 mee ee eg se a ay gai le var yo ‘information which ge Se me di venue enquiry may oe ccf oF den ary ems Of 8 REDE get el cee A ors ee oe cate Where he cit uni 20 G or of waking POPS CSTE tinge co. Proce, PPe re 1 Hoof ORME SE ah See of oes Se kore ea Seamer hs member S pocia & fran and te poe Po Toa! pots cu the bene Tir pve oa oer of the, Revere ie Beat ee mgm A — rs Len io 48 The Accountant ou en, wd SN 8 ‘an accor 36 SE pS oe Tis ast CO Os OY er tt penon uo retain possesion of eae Te owes to the person in possess" ce st a Scanned with CamScannercn lo of ew bao person in possession on any account whatsoever. However, such eo be esublsed. A pat fen & a fen over property which ean (2% Sb) set payment ofa artur debt due i respect of # & paid, THe SSR rite nitro oo gs wie ems ec soa ei a Gee i Fae regan fe courant as perfommed work for which he has ! pe cee In Woodworth v. Conroy (1976) Q.B. 884, Lord ‘iste ‘ roe a ae agreed) said: “T would adjudge that = course of ordinary professional of icing a Ect cnt clea arans eres 48.1. Conditions for the Exercise of Lien A ‘ight of fen wil only exit mas only exit where all Gur of the flowing condition (the documents retained mat be Pe ee SE TI St Sh et oe a ‘such work and nt in respect of oer uehied work, ® Fepect of ene anna ae ea Ck pany in thi priate capacities, ithe fey br mga, F or in his prhte capaeiy are wmpaid, no ridn of be oo ome for company’s documents in the light of ( and (iv) above, mM EXtS Over the SEY cae ree te ee om” fe posesion of son Of be meer i) arn ® regarding the existence and enforcement of rs, PTA py ing fF Bers doesnot app. gel Postion 7 cases wy consi o eee 1 8 To Of Be pis of 4 eps. of ene puble poly an whe tg FO rey okt of Compr Me cattie S wtuny wn Bey ks of Ceres wey wish Septet company Sikh cr by sos ae ae ot 5 be of te cong, ve w be nol e pl nae set at he pred Obs or ote Sd wt AS in any sfsal vay ic coe ae Cap he dent wn Ausociation (1883), 28.CRD. ah al Re Te AnbeNace Iwan eek Co. Uae (UMS), 54 Le} Ch TA ae Nidan icon fe We sane pigs apy me ee Accounting records of companies: Cos) ives tt en va Accent be opel ethno He scone eens wh 2 aroha rast Keep oer fo comply wih 2334 of comases al | Sed ators Ack 2008 ecves for debenture hole Wh «men 816 ow We er eee remem fa cena t | ask ect dos st Gr 8 en Se = anon 8 a afc fom becomes te ee | Biess ints ondary couse. aw, fo) Liquidator sppoime cements which com 0 Tee ema oe wee CouotWheeh meober cB 6 i BE sree prt t ht Band COS Ti et ceining, up 0 deeming oll qs, tie cet of Croukl have sinar power ® 8 WORRIES CAMA 2004 Toto apn 10 He com wl Nene 1 ZR sof precedent was subi’ cf son of Snes ‘Companies. Court in oO Se ne of 96, os Loi ase of D. M. Cat & Co, LSC NO stn oft CO, qatar of a company fr te te poses feeount and other documents wich we Registrar ordered: 8 Scanned with CamScanner1) dar de aloe sol pce 0 Sto a oaks ang ie eee etn ta oot LIE SE ny Eiken Soar atta adie a fa ot Cai te ses 4) bare alors eed cons of Bg’ sons cml bey ‘out of the assets of the company. It does not appear to have eaten Sen ae gree aioe cpacums tons Tite es ee ony ts naa bine secking Wo exercie fin 49° Risk Assessment General principles Professtanal skepticism: Th aulkor shi pn and px atid of poesia shepcn opie tt cea at ih cause the frneial statements to be mately masiated. The wep * Clic assesment, with & qusoning min, of the aly of ey obtained ‘Alenness to contadétory evidence i, ae aula eR Cones tbo reads 10th Ben cin Netter te seption tat + Menpestonet fame, owe rr be anton ned verse other approaches sk = ene tn pes ae tas tacit |e ES ee ae Be oe ee ns Coie ox at of ee eae ee tet 2 taper ct op wt te cess, meal sa of 0) OnE Pr newt cole tection 788 Yak at te i fron semen ae rhe Aut Risk Model AR=IRXCRXDR we TESA" a i mc eto ee Bo Ce te ole Do soe SSE SARL a Seto ci vo 38 Scanned with CamScannerting * does mt rr to de aultor’s bushes rks 9 esum sdene publety or oder eves arbing ft comecton fori sateen mh ay nw Wath gs 9 ma) ‘eis ofl nee te aserion Kel com fag | components: Het rik and conto rk. Ihre rk ard cont uy Sp is yee enon fa a ge set ere ion MAG Rokr bone sein ant wid cons of secon frees amd dicbsres fon fr oes. For caplet map Rest Br compe eakaons or fr scouts conse of amano A scomitg, cis at ae bjt 10 spicant estan Se Busca! cicumsiances giving rie wo busiess chks may ako infunce Ce) Tak. For exmpk, tctnobygcal developmen might make a purtcuse SE = tery ‘causrg ienory w be more susceptible wo overstnets of tanto, scent bbs dicen may ako aan st ke ‘aed 0 pe nen Sac et ay na yh Of sufi working capa! 1 comtine operations or a dclante characte’ by ake umber ofbisies fires ¥ 4.102 Cont rsk Cool ik 54 asin of ection of don apkmcton ay aterm of isenal contol by memgenet taller ented ae threaten the —— of the entty’s objectives relevant 10 al ests. ravens. Tere dsioed an ops cn ory one he ei, pistenest ‘i the finochl statements, because of ere ‘Biemal control These inchide, fi 2 font co I, fr cane posi oem cia Cie being cicumnented by collsion or in " agement override. Accordingly, sone control eres NSA prove coon er ‘mis chose fo es Be trang and een of veh sad the inherent lingains of operating eflctneness of contoh in deteinng ye ng ‘substantive procedures to be perfirmed, ee The SAS do moto fer Wa conbied ac However, he alice Howover te aulior may make separate cna sp te “tls of meray smh bt co oF conbined assessnents of 3 rik depending on prot! ait tng sees HS oF methodol net a 56 acta Se. De me 8, eam Farin oe ht be She nas eS caters AS ta Bed oe Hs epee aaa art wg SRE USSSA en co woos Beet 2 Sn Sl sto Sion grate ane SESoLL fortes So i ci me ae ere Scien tm iy wha tm ated ye oer ota ei seine esata Saree ‘es Ojon by the aualtor, Matters such as; ape juste pling. pe gaa d 0 or can of rokana eaoy Sal 1 Megan and ew ofthe ait wok peared, seus Os efit of 8 at te lof ain nit 0 cts OSS tar a tar gts oe aod ree te Doe ope aah clay ce ane Be sl pose reas. 5 and prove ils on ping . SA 12 esebich requtores = Sn on NSA 2 sh Sa mae © a ant of fen jy be rele, a end, base of son fae, howe, co oS Da nt ana Ang, me ein SW iy GSA 320) me comer mately sik wes canta an ale Te obs of SANE ie autor #0 expe 2 oS 1 ih st aed ts reba wit Sole of frail tees he enc seme ae Scanned with CamScanneriis omision or misatemy, tt tkenan BS oft js te | iy 4 er Wa ote dein of BES sod wih tying ‘emo, iin de aout (aussi) Md rte 1p be comilered ra eee as 1088 ON Mery ofjudarent ro key areas at procedures; an Why is materiality imprint Wi games eon a el mse design alt procedures rede te rk of tne an ve. ‘aubos three ms eal mastenen an acepate Bel a ates mst dc on wit hy mean By “marin” ef ty dsp ta procls > ment they cammot show me Tee at ig A ameernie a Fao D Eason. Seeger pee ae a eas aest cal siatement wil be eee Pret ces ae CE a ne ge see OS Tee a me sa aed ; a s ert rn oe ot ese nal seem Om ST bjt fas been schiwed: Tol aN ming mae 8 abo wed jo ns for to plan his work adequate sti ce TE at proce rant sat Fans dt an sae tl ira oe oo eang = 00am cos eftctvely an fii pe cs te wet fom eh and, Pek tee feopeatin of 3 cea's sal coud Oe be compton ofa eee at © be seit ery ited ire sca computer compary BES spe cine of Rie! La a bree 2) Kyed you © seer She romatn 1 replace the present autor the ee ct er company. Tie coneaty Is Hy armen pacts © wih & Is rarsered ost of OH aig arrears ‘require ‘Befre secepanee of any sow ant ase, Oe St ber of en Bt IRM ot tve 10 be comilred. Lt UH mee ae of be sonia be este er te BOWTE reads: o ue @ Bl (jy Prtal ay Wott seworundun? a) Sa fe es NTE piming tam ay sings pom and eure working apes Fou ve ten sr peta 1 sone Te tH Hote ofc one set oho otkng pe our peg 10 PEPE YON THY tis prevention et out ae ass ets eS apes 9 Scanned with CamScanner6) Ta) °) 8) (b) The contents of working papers; and i (© The etter you would se to judge the quality of working a Under what condition will a right of ken only exist? What is “documentation” State ten matters which working papers should contain Discuss briefly ownership and eustody of working papers The leading authority on the ownership of papers held by an tite de Chantery Martin & co V. Martin (1953). Taking into cco ci in this case, who as between the auditor and the client the audi eal (@) The working papers and schedules prepared by the auditor in relay (oy Rte aud othe books ofa chen attr | raft tax computation prepares i (©) Comesponence between the autor and Inkid Revenue rebing the account of the client and the tax computation thereon (@) Filing of returns with Corporate Affairs Commission (CAC) oq behalf of the cliont in relation to audit? 60 Scanned with CamScanner