Legal, ethical and current issues: professional and ethical issues that may arise during an assurance engagement- relevance and importance of assurance engagement- possible referral to external parties- standard-setting process- non-technical language- national standard-setting body- national legislation affects the scope and nature of the audit- different auditing requirements- requirements to report on internal controls (Sarbanes-Oxley Act)- audit failure and their effects and the gap.
Accepting and managing engagements: legal, professional and ethical considerations specified assurance engagement- sources of liability arising from an assurance engagement- the scope and terms of an assurance engagement- the approach suitable for management of the assurance engagement- purpose of quality control of assurance engagements- controlled through procedures external to the organization.
Planning assurance engagements: knowledge and understanding of the business when planning an engagement- gaining knowledge and understanding of a client’s business- regulations and assess their implications for the engagement- potential impact on performance measurement- the components of risk for a specified assurance engagement- the impact of risk and materiality on the engagement plan- the benefits and limitations of analytical procedures at the planning stage- the breakdown of audit risk- the aspects of employment law, tax law and other local laws- engagement including appropriate auditing standards.
Concluding and reporting on assurance engagements: disclosure in relation to the matters being reported- assurance tests and procedures- the ability to report on an assurance engagement.
Questions and Answer Section:
- Briefly write on The International Auditing and Assurance Standards Board (IAASB).
- Briefly write on The International Federation of Accountants (IFAC).
- What are the purposes of planning an audit? Enumerate the matters which are to be considered by an auditor in developing his overall audit program.