ASSURANCE IN FINANCIAL AUDITING Table of contents_part9 potx

A Handbook 193 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. • If so, has the audit team leader or audit director: - ensured appropriate consultations have taken place; - been satisfied that the nature and scope of, and conclusions resulting from such consultation are documented and agreed with the party consulted, and - determined that conclusions resulting from consultations have been implemented. ISA 220 para 30. ISSAI 1220 This is trial version www.adultpdf.com A Handbook 194 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. • Have differences of opinion arisen within the team with those consulted or if applicable, with the audit quality control review? If so, have these been resolved following the RAA’s policies and procedures? ISA 220 para 34 ISSAI 1220 This is trial version www.adultpdf.com A Handbook 195 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. • Has the audit team leader or audit director determined if the RAA has appointed a quality control reviewer for this audit? - If an audit quality control reviewer (AQCR) has been appointed, has the appropriate RAA official discussed significant matters arising from the audit with the AQCR? ISA 220 36 & 38. ISSAI 1220 This is trial version www.adultpdf.com A Handbook 196 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. - If AQCR has been appointed, was the audit quality control review completed before the auditor’s report was issued? - If AQCR has been appointed, has the ACQR evaluated significant judgments made by the team and the conclusions reached in arriving at the auditor’s report? • Has the audit team leader or director considered the results of the RAA’s monitoring process? ISA 220 para 41. ISSAI 1220 This is trial version www.adultpdf.com A Handbook 197 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. • Independence requirements and relevant discussions with the RAA leadership to support the conclusions? 1 0 Where relevant, is there documentation that the audit team leader/audit director has considered issues related to the acceptance and continuation of an audit engagement: The integrity of key management and Par. 2.2.33 to par 2.2.38 Par. 2.2.21 ISA 220 par 14 and 18. ISSAI 1220 This is trial version www.adultpdf.com A Handbook 198 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. a . b . c. 1 1 . a . those changed with governance of the entity. -Is the audit team competent to perform the audit engagement and has the necessary time and resources -Whether the RAA and engagement team can comply with the ethical requirements? If issues arise from any of those considerations, is there documentation of how issues were resolved in particular: -if the RAA has discretion to accept or continue an ongoing audit engagement, how these relationship issues affected that decision, or, This is trial version www.adultpdf.com A Handbook 199 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. b . if the RAA does not have the discretion to accept or continue an audit engagement or the ongoing relationship, what actions RAA has taken to address these issues? 1 2 . Has the audit team leader or audit director ensured that the team collectively has the appropriate capabilities, competence and time to perform the audit in accordance with professional standards and applicable regulatory and legal requirements and to enable the issuance of an auditor’s report that is appropriate in the circumstances? Para. 2.2.33 and Par.2. 2.39 Par 3.5.3 ISA 220 par. 19 ISSAI 1220 This is trial version www.adultpdf.com A Handbook 200 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. 1 3 . a . b . c. d . e. Is there documentation that the audit team leader or audit director has taken responsibility for the direction, supervision and performance of the audit, by informing audit team members of: - their responsibilities: - the nature of the entity’s business: - risk related issues; - problems that may arise; and - the detailed approach to the performance of the audit? Par. 3.2.1 to 3.2.5 ISA 220 par 21 ISSAI 1220 1 4 . Has the audit team leader or director reviewed the working papers to ensure that there is sufficient, appropriate audit evidence to support the conclusions reached and the audit’s report to be issued? Par. 3.2.4 Par 3.5.1 and 3.5.2 ISA 220 par 26 ISSAI 1220 This is trial version www.adultpdf.com A Handbook 201 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. 1 5 . Have the audit team leader or audit director or team members identified difficult or contentious matters requiring consultation? 1 6 . a . b . c. If so, has the audit team leader or audit director: - ensured appropriate consultations have taken place; - been satisfied that the nature and scope of, and conclusions resulting from such consultation are documented and agreed with the party consulted; and - determined that the conclusions resulting from the consultations have been implemented? ISA 220 par 30 ISSAI 1220 This is trial version www.adultpdf.com A Handbook 202 INTO SAI Ref. ISA /ISSAI Ref. Y E S N O N/A Comments (Describe the brief explanation of findings and link it to next template which showed the next Appendix ) WP Ref. 1 7 . Have differences of opinion arisen within the team, with those consulted or, with the audit quality control reviewer? If so, have these been resolved following the RAA’s policies and procedures? ISA 220 par 34 ISSAI 1220 1 8 . Has the audit team leader or audit director determined if the RAA has appointed a quality control reviewer for this audit? ISA 220 par 36 and 38 a . -If an audit quality control reviewer (AQCR) has been appointed, has the appropriate RAA official discussed significant matters arising from the audit with the AQCR? ISSAI 1220 This is trial version www.adultpdf.com [...]... adequacy of the systems (design of the accounting and internal control system)? Is the preliminary assessment of control risk for each financial statement assertion justifiable? Were key controls identified to substantiate the assessment per assertion? Was the audit approach appropriate? Was the preliminary assessment of control risk, in conjunction with the assessment of inherent risk, considered in developing... www.adultpdf.com A Handbook WP Ref 210 INTO SAI Ref 8 In determining the use of CAAT’s were the following factors considered: Computer knowledge, expertise and experience of the auditor Availability of CAAT’s and suitable computer facilities Impracticability of manual tests Economic, effectiveness and efficiency Timing 9 Where CAAT’s were used, does the working papers contain sufficient documentation to describe... support opinions furnished on financial statements? Are the audit programmes sufficiently comprehensive to result in satisfactory assurance in all areas of significant audit risk? Is each step of the audit programme initialled with evidence to indicate that the work was completed? J 1 ANALYTICAL PROCEDURES Were analytical procedures performed during the planning phase of the audit in order to identify risks?... 203 INTO SAI Ref 3 4 5 6 7 Were all significant changes to the audit plan documented, substantiated and approved? Do the audit working papers indicate an appropriate level of knowledge of the auditees business and industry in order to identify risks, events, transactions and practices that may have a significant effect on the financial statements? Were complex audits split into more manageable units in. .. degree of (f) technical training and proficiency required in the circumstances? Does a sufficient audit Par timetable exist and are 3.1.4 (e) the planned dates reasonable? Consider the following: • Attendance of stock and assets counts? • Receipt of certificates or audit confirmations? • A starting date for the audit? • A finalisation date for the detail work for senior review? • A planned date for issuing... explanation of findings and link it to next template which showed the next Appendix ) WP Ref ISA 400 par 31 b EXECUTION: CAAT preparation and testing procedures and controls, Details of tests performed by the CAAT, Details of input, processing and output, and Relevant technical information about the entity’s accounting system, such as computer file layouts c AUDIT EVIDENCE: Output provided, Description of. .. 206 INTO SAI Ref E RISK ASSESSMENT AND INTERNAL CONTROL 1 Was the inherent risk assessed at the financial statement level as well as assertion level for account balances and classes of transactions? Is the inherent risk assessment justifiable in view of risk factors identified? 2 Do the working papers contain evidence that a preliminary review and evaluation of the control environment and control procedures... to the financial statements of the Auditee? Taken into account: Comparative figures Opening balances I ISA 710 par 6 ISA 510 par 5 DEVELOPMENT OF DETAIL AUDIT PROGRAMMES This is trial version www.adultpdf.com A Handbook 213 INTO SAI Ref 1 2 3 4 Is there evidence of a senior person having approved audit programmes prior to the commencement of fieldwork? Are audit programmes designed to support opinions... d REPORTING: Recommendations to management G TESTS OF CONTROL 1 Was audit evidence obtained through tests of control to support any assessment of control risk which is less than high? This is trial version www.adultpdf.com A Handbook 212 INTO SAI Ref 2 3 4 Does it appear that the tests of controls over the internal controls are appropriate in the circumstances? Does it appear that the test of control... conclusions reached in arriving at the auditor’s report? Has the audit team leader or director considered the results of the SAI’s monitoring process? C PLANNING 1 Do the audit working papers reflect adequate planning by means of a planning memorandum or similar documents? ISA 220 par 41 1 9 2 ISSAI 1220 Par 3.1.3 (k) ISA 300 par 2, 8 &9 ISSAI 1300 Is there evidence that the planning memorandum was . preliminary assessment of control risk, in conjunction with the assessment of inherent risk, considered in developing the audit approach? Par. 3.1.4 (e) ISA 400 par. 10 F INFORMATION. 300 par. 12 ISSAI 1300 4 Do the audit working papers indicate an appropriate level of knowledge of the auditees business and industry in order to identify risks, events, transactions. date for issuing the financial statements and reports? • Completion of the planning process prior to the commencement of the detailed field work phase? • Proper supervision of junior staff