OVERVIEW OF THE AUDIT PROCESS AND PRELIMINARY ACTIVITIES
OVERVIEW OF THE AUDIT PROCESS AND PRELIMINARY ACTIVITIES
Objectives:
At the end of this lesson, students should be able to discuss:
One. The responsibilities of different parties
Two. The different categories and types of management assertions
Three. The activities conducted in performing a financial statement audit
Four. The audit process
Five. The process of accepting or continuing an audit client relationships
Six. The process of agreeing on the terms of the audit engagement
Seven. The form and content of the engagement letter
Eight. The considerations taken in accepting a change in an engagement
Nine. The different categories and types of audit procedures
Responsibilities of the Different Parties
Responsibilities of the Different Parties
A. Management and TCWG
One. Preparation and presentation of the financial statements in accordance with the applicable financial reporting framework.
Two. Design, implementation and maintenance of internal control.
Three. To provide the auditor with:
i. Access to all information ii. Additional information that the auditor may request iii. Unrestricted access to persons within the entity
B. Auditor
One. To obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error
Two. To report on the financial statements, and communicate as required by the PSA