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Period: to
Plan audit
Update knowledge about the client
Review Industry Risks and establish IR and CR
Establish Detection Risk and amount of work
Set Materiality
Plan for # of Staff - tasks, hours, schedule -
Period: to
Conduct Preliminary Analytical Procedures
Condust ratio & trend analysis as part of risk assessment procedures to highlight areas that have changed. Since the year has not ended, must use Year-to-Date Financial Statements eg. June 30, 2014 -
Period: to
Conduct Interim Test of Controls
For any accounts that will be tested using a "Reliance Strategy", choose the important controls to be tested that match the management assertions (OCC-COM, AUTH-ACC, CUT-CLASS) and test from January 1 to September 30 -
Period: to
Conduct Interim Test of Details (transactions)
Transactions such as Revenue, Expenses, Purchases, Salaries, etc. can be tested for the period January 1 - November 30 to ensure that they meet Management Assertions on balances (Ex, R&O, Comm, V&A). -
Period: to
Conduct Physical Inventory Count & Cut-off Procedures
Some testing must be done right at the year end. The client will be conducting their counts of physical inventory and the auditor needs to observe these procedures and perform test counts. Also the auditor must review the shipping/receiving documents to separate transactions between old year and new year. -
Period: to
Send out Confirmation Letters
Send out confirmation letters to the following:
Banks - to confirm cash balances
Customers - to confirm accounts receivable
Suppliers - to confirm accounts payable -
Period: to
Conduct Final Test of Controls
conduct test of controls to ensure they were still working from October 1 - December 31 -
Period: to
Conduct Final Tests of Detail (Balances)
Accounts on the Balance Sheet (Assets, Liabilities, Equity) can only be tested after the year end when the final balances are known. They are tested to see if they meet Management Assertions for Balances as at December 31st (Ex, R&O, Comm, V&A) -
Period: to
Conduct Final Tests of Details (Transactions)
Transactions such as Revenues, Expenses, purchases, salaries, etc. were already tested in the interim but now they need to be tested for the final period of November 1 - December 31 to see if they meet Management Assertions (OCC-COM, AUTH-ACC, CUT-CLASS) -
Period: to
Conduct Substantive Analytical Review (Balances)
Substantive Analytical Procedures are used to test balances in total - most commonly Reasonableness Analysis. The auditor uses calculations to develop and estimate and then compare it to the actual amount and investigate any major differences. -
Period: to
Conduct Final Analytical Procedures
Conduct ratio analysis and trend analysis on the final balances in the Balance Sheet and Income Statement to make sure all numbers make sense and no major changes were missed. -
Period: to
Completing the Audit
Review Contingent Liabilities
Review Subsequent Events
Working Paper Review by Partner