Analyses of audit effort, Auditing

Develop a list of tasks the auditor should perform in planning this audit engagement, before any audit testing begins.

Ans:

It is in the interest of both client and auditor that the auditor sends an engagement letter, preferably before the commencement of the engagement, to help in avoiding misunderstanding with respect to the engagement. The engagement letter documents and confirms the auditor's acceptance of the appointment, the objective and scope of the audit, the extent of the auditor's responsibilities to the client and the form of any reports.

The preliminary plan of engagements is documented and prioritized. Audit resources and expertise are then considered and a final plan is presented to senior management and the Audit Committee. The presentations vary based on the needs of the stakeholders and may include the following:

• Summary of key goals, risks and corresponding major audits, to illustrate alignment;

• Analyses of audit effort along a variety of dimensions (e.g., by business segment, COSO objective category, IT, Sarbanes-Oxley, vs. prior year, etc.) along with commentary regarding changes;

• Brief description of critical projects identified;

• Projects requested but not planned for execution due to prioritization and resources;

• Required co-sourcing effort, typically where outside expertise is required or during peak periods;

• Coordination with other risk functions, such as legal, compliance or insurance, to ensure coverage of key organizational risks;

• Update on audit staffing levels, experience and certification; and

• Appendix materials, such as planning approach, assumptions (e.g., days per auditor and staffing level) and brief descriptions of all planned audits and related prioritization.

b) Handbook section CAS 315 lists management assertions embodied in financial statements. List and briefly describe the audit objectives that relate to these assertions.

Posted Date: 3/16/2013 3:51:10 AM | Location : United States







Related Discussions:- Analyses of audit effort, Assignment Help, Ask Question on Analyses of audit effort, Get Answer, Expert's Help, Analyses of audit effort Discussions

Write discussion on Analyses of audit effort
Your posts are moderated
Related Questions
types of EDP accounting system and impact of EDP accounting controls

Fraud and Error ISA 240: the Auditor’s duty to Consider Fraud and Error defines that whenever planning and performing audit procedures, computing and reporting outcomes thereby

Interim and Final Audits Whereas the split between the systems and balance sheet audits is concerned with thetype of work covered, that between the interim and final audits is

Existence - Detailed Audit of Stock In the previous the auditor accepted a director's certificate as to the existence of stocks.  Until some cases specifically in the United S

Describe your role in managing a discrete assignmentn..


Verification Procedures - Long-Term Liabilities a) Received a schedule detailing the sums due at the starting of the year, redemptions and additions and the sum due at the yea

under what circumstances are internal controls inappropriate for auditors to check?

Counter - Indications That the auditor has found indications of going related to non-applicability does not of itself justify instantly conclusion that the entity is not a goi

Relevance of Audit Evidence The relevance of audit evidence has to be determining in relation to the overall objective of forming a reporting and opinion on the financial stat