You are on page 1of 7

Supervision & Review Planning

GENERAL INSTRUCTIONS ACCEPTANCE AND CONTINUANCE DECISION


Procedures 1. Before accepting appointment or reappointment to an audit engagement, Yes/No/Na

did the audit engagement partner assess the following factors in order to assess the acceptability of the engagement: a) Client Risk b) Professional Service Risk 2. Were the assessment of engagement risk and the acceptance of the audit engagement approved by at least one other partner before beginning fieldwork? Note: Should the risk classification be in excess of normal risk, additional approval levels are required. 3. For new or existing engagements, were background checks performed and appropriately documented if there has been a change to the principal officers/owners?

Strategic Audit Planning


Procedures 4. Did the audit engagement partner lead the strategic audit planning at the Yes / No / NA Yes. Please refer to <1210>

beginning of the audit and were key engagement team members and appropriate specialists (i.e. taxation, forensic, control assurance, corporate finance specialists, other auditors etc) involved in strategic audit planning? Did the engagement partner determine what should be communicated to the engagement members that did not attend the initial engagement team discussion?

Independence
Procedures 5. Did the audit engagement partner consider the independence threats related Yes / No / NA Yes. Please refer to <1210>

to the engagement, together with the safeguards applied to minimize the threats? Did the engagement partner consult with the Director of Independence if required, and retain a copy of the consultation in the audit file?

Rotation
Procedures Yes / No / NA

6. Did the audit engagement partner consider the rotation requirements documented in the , and where more restrictive, the member firm policies on rotation? Did the audit engagement partner ensure that all key partners, the engagement quality reviewer and other partners involved on the

assignment comply with policies on rotation?

AGREE TO TERMS OF ENGAGEMENT


Procedures 7. Did we agree on the terms of the audit engagement with the client before Yes / No / NA

commencing significant portions of fieldwork and have we documented in writing and communicated to the client the terms of the audit engagement? Have we utilised the latest templates on Deloitte Resources for this purpose?

DETERMINE MATERIALITY
Procedures Yes / No / NA

8. Did we document the amount and the factors considered in our determination of materiality for the Financial Statements as a whole? [ISA 320 9. Did we document the amounts and the factors considered in our determination of Performance Materiality?

OBTAIN AN UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT Internal and external factors
Procedures Yes / No / NA

10. Did we obtain an understanding of the following: Relevant industry, regulatory, and other external factors including the applicable financial reporting framework; The nature of the entity (operations, ownership, governance structures, types of investments, special purpose entities, financing structures); The entitys selection and application of accounting policies, including our assessment of whether the accounting policies are appropriate for the entitys business and consistent with the applicable financial reporting framework and accounting policies used in the relevant industry; The entitys objectives and strategies and those related business risks that may result in risks of material misstatement; The measurement and review of the entitys financial performance.

11. Did we document the sources of information from which the understanding was obtained and the related risk assessment procedures that were performed? 12. As part of obtaining an understanding of the entity and its environment did we obtain a general understanding of: The legal and regulatory framework applicable to the entity and the

industry or sector in which the entity operates How the entity is complying with that framework. [ISA 250.12]

Involvement of an IT specialist
Procedures Yes / No / NA

13. Did the engagement partner have a discussion with an information technology specialist on what involvement of such a specialist, if any, is appropriate in the audit engagement given the facts and circumstances, unless: The discussion took place in one of the prior two audits; and The following circumstances have not occurred since the previous discussion: o Significant changes in the extent of our reliance on automated controls, o Significant changes in the use of computer-generated information, or o Significant changes in the entitys information technology systems or general IT-controls.

Considering internal control


14. Did we obtain an understanding of the internal control around the following areas: The control environment; The entitys risk assessment process; The information system, including related business processes, relevant to financial reporting and communication; Control activities; and Monitoring of controls. 15. Have we obtained the necessary understanding of controls relevant to the audit? These include: Controls that mitigate a Significant Risk; Controls over risks where it is not possible to obtain sufficient appropriate audit evidence from substantive procedures alone; Controls that we intend to rely on; and Controls that we judge necessary to understand in order to assess the risk of material misstatement at the assertion level and design further audit procedures responsive to assessed risks. Preliminary Analytical Review

Procedures

Yes / No / NA

16. Did we complete preliminary analytical procedures to familiarise ourselves with the entitys profitability and liquidity? 17. Did we obtain sufficient audit evidence about the accuracy and completeness of information produced by the entity that is used by us in performing the preliminary analytical review?

IDENTIFY ALL MATERIAL CLASSES OF TRANSACTIONS, ACCOUNT BALANCES AND DISCLOSURES


Procedures Yes / No / NA

18. Did we identify all material classes of transactions, account balances and disclosures in the Financial Statements by considering both qualitative and quantitative factors?

IDENTIFY AND ASSESS THE RISKS OF MATERIAL MISSTATEMENT


Procedures Yes / No / NA

19. Did our risk assessment procedures include: Inquiries of Management and of others within the Entity who in our judgement may have information that is likely to assist in identifying Risks of Material Misstatement due to Fraud or Error; Preliminary analytical procedures; and Observation and inspection. 20. Did we assess and document all identified risks of material misstatements at the financial statement level to provide a basis for designing and performing further audit procedures? 21. Did we assess and document all identified risks of material misstatements at the assertion level for all classes of transactions, account balances and disclosures to provide a basis for designing and performing further audit procedures? 22. Did we make inquiries of and respond to, where appropriate, those charged with governance, management, internal audit and others to determine whether they have knowledge of any actual, suspected or alleged fraud affecting the entity? 23. Did we make inquiries of management regarding: Managements assessment of the risk that the financial statements may be materially misstated due to fraud, including the nature, extent, and frequency of such assessments; Managements process for identifying and responding to the risks of fraud in the entity, including any specific risks of fraud that management has identified or that have been brought to its attention, or classes of transactions, account balances, or disclosures for which a risk of fraud is likely to exist Managements communication, if any, to Those Charged with Governance regarding its processes for identifying and responding to the risks of fraud in the entity Managements communication, if any, to employees regarding its views on business practices and ethical behaviour. [ISA 240.17] 24. Have we considered the appropriateness of the classification of risks of material misstatement and significant risks, and that the planned audit procedure to respond to such risks identified is appropriate? 25. Did we consider the presumed significant risks of material misstatement, i.e. revenue recognition and management override of controls?

OTHER Audit planning memorandum

Procedures

Yes / No / NA

26. Has the audit engagement partner approved the audit planning memorandum?

Using the work of an auditors expert


Procedures Yes / No / NA

27. Where an auditors expert is used on the audit engagement, have we evaluated whether the auditors expert has the necessary competence, capabilities and objectivity for our purposes? 28. Did we obtain a sufficient understanding of the field of expertise of the auditors expert to enable us to: Determine the nature, scope and objectives of that experts work for our purposes; and Evaluate the adequacy of that work for our purposes. [ISA 620.10] 29. Where an auditors expert is used on the audit engagement, have we agreed the following matters, in writing, with the auditors expert: The nature, scope and objectives of the experts work; Our role and responsibilities and those of the expert; The nature, timing and extent of communication between us and the expert, including the form of the report to be provided by the expert; The need for the auditors expert to observe confidentiality requirements. [ISA 620.11]

Using the work of internal auditors (Form 1165 would ordinarily be used to document matters below)
Procedures Yes / No / NA

30. Where internal auditors work is used on the audit engagement, have we determined: Whether the work of the internal auditors is likely to be adequate for purposes of our audit; and, if so The planned effect of the work of the internal auditors on the nature, timing and extent of our audit procedures. [ISA 610.8] 31. In determining whether the work of the internal auditors is likely to be adequate for the purposes of our audit, have we evaluated: The objectivity of the internal audit function; The technical competence of the internal auditors; Whether the work of the internal auditors is likely to be carried out with due professional care; and Whether effective communication with the internal auditors it likely? [ISA 610.9]

Prepare and Control Audit Documentation


Procedures Yes / No / NA

32. Do we believe that the audit documentation is prepared in a way that is sufficient to enable an experienced auditor, having no previous connection with the audit, to understand: The nature, timing, and extent of the audit procedures performed to comply with The Manual and Professional Standards and applicable legal and regulatory requirements; The results of the audit procedures performed, and the audit evidence obtained; and Significant matters arising during the audit, the conclusions reached thereon, and significant professional judgments made in reaching those conclusions.

You might also like