benifit of planning:
planning up front we can work out which are the most important area as and devote ore of our time and budget to make sure we get these right.
combine with risk analysis to sort out issues
pick up team with the right skills and experiences
get external people to be booked and make sure they are goingto be available
senior members can organize his supervise to the team-on track, and reviewing
efficient and effective
planning：
objective
scope
in accordance with ISAs standard and pricinple framework
ipurpose ,strategy, plan , intrim and final audit
quality control:
leadership
human resources
director, surpervsion, and review
planning procedure：
core audit strategy
1. part one characteristics of the engagement
should include the following infomations
financial report framework; industry reporting；knowledge of the business, internal audit; use of ATTs; avaible of clients staff
2. part two Nature , timing and extent of resources
slection of audit team and overal budget
3. part three siginificiant factors, preliminary engagement activities
materiality, risk assessment, internal controls, need for scepticism, changes in laws and regulations, significant development
4 part four reporting objectives, timeing, and communication
timetable for reporting, communication with clients ,team and third parties
audit plan more detail in each area and quantity :
what, who, how much, when
interim audit: conduct before end of the Fical year,
objective of audit to detect material misstatement or material non-complains, to make sure the financial report give a true and fair view.
| engagement quality control review | cold review | |
| purpose | to prevent inappropriate opinion being issued | to assess if standards, laws and internal policies are being consistently applied |
| when | before signed an opinion | after signed an opinion |
| which kind of audits | listed or risky | A sample of all audits from all files |
| by whom | independent partner | independent partner of quality team |
| output | agreement on opinion or recommendation for more works |
report to each partner highlighting areas of good and bad practice. May feed into training requirement changes to policies.
|
the purpose of documentation:
working papers
to record all works done
all pratice was reviewed by supervisor or more senior staff to the preparer
to allow the audit partner to issure an appropriate opinion
to be our defence in a negligence case that the audit was carried out correctly and completely
