...Essay: Auditing Planning Broadly speaking, audit planning is specific guidelines for auditor to perform an audit. Audit planning is usually conducted at the beginning stage of audit process. AICPA (American Institute of Certificate Public Accounting), PCAOB (Public Company Oversight Board), and IFAC (The International Federation of Accountants) are organizations or non-profit corporations who contributes to developing standards and guidance in auditing area, including standards for audit planning. Thus, this essay will discuss the requirement, and compare and contrast, of standards and guidance for auditing planning that has been issued by them; as well, analyze the impact on the performance of the audit. AICPA, by its publication titled AUC Section 300, addresses guidance for auditors in planning an audit. This contains introduction, objective, requirements, and application and other explanatory material. First, the introduction part includes the scope in planning the audit, the role and timing of planning, and the effective date of this standard. The scope of planning an audit explains the responsibility of the auditor to plan an audit of financial statement. This section also mentioned to refer to section 600, Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) for further information related to the auditor’s responsibility. The role of planning and timing explains the adequate benefit in planning the audit of financial...
Words: 2209 - Pages: 9
...Statement on Responsibilities in Personal Financial Planning Practice Copyright © 2010 by American Institute of Certified Public Accountants, Inc. New York, NY 10036-8775 All rights reserved. For information about the procedure for requesting permission to make copies of any part of this work, please visit www.copyright.com or call (978) 750-8400. ACKNOWLEDGMENTS Statement on Responsibilities in Personal Financial Planning Practice Task Force Clark Blackman II, Chair (PFP Executive Committee) and Past Chair Dirk Edwards, Chair John Connell Charles Kowal Jerry Love Randy Ryan Scott Sprinkle Ken Strauss AICPA Staff Mark Koziel, Director (Specialized Communities) Andrea Millar, Sr. Technical Manager (PFP Division) Teighlor March, Senior Manager (Legal, Legislative & Regulatory Affairs) Sarah Bradley, Project Manager (PFP Division) 2 Contents Acknowledgments .................................................................................................................................. 2 Foreword ................................................................................................................................................ 4 Exceptions From This Statement............................................................................................................. 6 Responsibilities of Members in Personal Financial Planning Services Engagements .............................. 7 Professional Competence .....................................................
Words: 18833 - Pages: 76
...RUNNING HEAD: HOW TO PLAN AN ENGAGEMENT PARTY 1 How To Plan An Engagement Party by Barbarito Capote May 27, 2012 ENGL106-1202B-243 RUNNING HEAD: HOW TO PLAN AN ENGAGEMENT PARTY 2 Abstract It’s a special moment to have an engagement party that you can share with important persons, family and friends. However, the actual planning takes tons of time and focus to get every detail dealt with. This paper will describe how to plan such an important event. RUNNING HEAD: HOW TO PLAN AN ENGAGEMENT PARTY 3 The process of planning an engagement party takes a lot of time and effort to get every single detail done. First off, you have to come to...
Words: 971 - Pages: 4
...Planning the Audit Process I wanted to let you know that Apollo Shoes is satisfied with our services and wants to continue with a full audit. Therefore I wanted to explain to you how I plan to conduct the audit. I will begin with an explanation of the objectives, responsibilities and strategies for completing the audit. This will be followed by explanations on how analytical procedures will be used to plan, conduct and complete the audit, how materiality and risk will be consider in designing the audit and how technology will be incorporated into the audit. The objective in conducting an audit are to obtain reasonable assurance about whether Apollo Shoe’s financial statements as a whole are free from material misstatement, whether due to fraud or error; allowing us to express an opinion that the financial statements are presented fairly, and in accordance with an applicable financial reporting framework. (Arens, J., & & Beasley, 2014) We have a responsibility to conduct this audit in accordance with established standards. These standards indicate that we should have a high, but not absolute, level of assurance that Apollo Shoe’s financial statements are free of material misstatements. However, it is possible that even when we conduct their audit in accordance with standards, we may fail to detect a material misstatement. Therefore, we have a responsibility to work to overcome judgment biases and to continually remind ourselves of the importance of maintaining appropriate...
Words: 2247 - Pages: 9
...Income Statements • Phases of the Audit Process A financial statement audit is an engagement performed by an independent accountant to provide assurance that an entity’s financial statements are reported in accordance with accounting principles generally accepted in the U.S. Specifically, certified public accountants, or CPAs, are obtained to provide audited financial statements to businesses, non profit organizations and government agencies. Each audit is customized to meet the needs of the organization. However, the overall approach to every audit is the same. Engagement Acceptance The American Institute of CPAs recommends that an auditor evaluate the risks associated with each engagement. Therefore, a CPA inquires about any special circumstances, the integrity of management and pending lawsuits before performing an audit. In addition, the auditor evaluates the staffing needed to complete the engagement and determines that each staff member is able to maintain an independent viewpoint while performing the engagement. Once the auditor decides to accept the engagement, an engagement letter is prepared that details the timing, responsibility and cost of the audit. Planning Auditing standards require that an auditor prepare adequate planning for an engagement. The amount of audit planning needed is in direct relation to the size and complexity of the organization. Audit planning involves obtaining an understanding of the organization’s business and industry...
Words: 615 - Pages: 3
...client does not want our firm to talk to the predecessor auditor, I recommend accepting a prospective engagement after I perform an investigation by gathering information about our client's reputation and background. Client acceptance and continuance procedures are the foundation of the risk assessment process (SAS No. 8). Upon acceptance of our client, I am confident that we will be able to move forward under the AICPA auditing standards to determine that the financial reporting framework is appropriate. My objective is to plan the audit so that it is conducted efficiently and effectively, in accordance with Generally Accepted Auditing Standards. I will take into consideration the preliminary planning activities such as the client acceptance, ethical position of our audit firm and our understanding of the entity and its environment, including its internal control, to develop an effective and efficient overall audit strategy that will appropriately respond to assessed risks. Our engagement letter, will include the timetable of fieldwork, the scope and duration of the audit, expected delivery date, and our fee structure. Once we retain our client, substantive audit planning can begin. Determining materiality and conducting a thorough risk assessment will be part of my plan. The audit strategy will help determine the resources required for the engagement, including engagement staffing and the need for outside specialists. The audit program will...
Words: 1378 - Pages: 6
...LECTURE OUTLINE CHAPTER 6 Audit Planning, Understanding the Client, Assessing Risks and Responding Brief Topical Outline A. The audit process 1. Obtaining clients (PowerPoint 6-2) — Submit a proposal — communicate with predecessor auditors 2. Overall process (PowerPoint 6-3,4) B. Audit planning (PowerPoint 6-5) 1. Establish an understanding with client, ordinarily through use of an engagement letter (PowerPoints 6-6, and 6-7) 2. Overall on audit planning (PowerPoint 6-8) C. Obtain an understanding of the client and its environment 1. Risk assessment procedures (PowerPoint 6-9) 2. Business risk approach to the audit (PowerPoint 6-10 through 6-16) 3. Materiality D. Assess the risks of material misstatement and design further audit procedures 1. Overall approach (PowerPoint 6-17) 2. Assessing fraud risks (PowerPoints 6-18 through 6-21) 3 Design further audit procedures (PowerPoints 6-22 and 6-23) E. Organization of the audit program 1. The systems portion 2. The substantive test portion (PowerPoint 6-24) 3. Analyzing transactions affecting accounts (PowerPoint 6-25) 4. Indirect verification of income statement accounts (PowerPoint 6-26) 5. Assertions, objectives and procedures (PowerPoint 6-27) — Management assertions — Direction of audit testing (PowerPoint 6-28) — Substantive objectives for...
Words: 948 - Pages: 4
...HR planning for future recruitment activities is difficult even in any economic climate. So when businesses are ever changing and the economic climate is challenging, undertaking HR planning for future recruitment activities is very difficult. It can be done however and this paper will explain how. This essay will outline what HR Planning is and how it is related to future recruitment activities as well as outline the benefits of HR planning in an organisation as well as what those difficulties are. I will then go through some strategic human resource management techniques that will help the human resource planning process easier in relation to future recruitment activities. Human resource planning is a constant process, which aims to ensure that organisational objectives are met by obtaining the right employees at the right time. Importantly with appropriate skill sets that help to deliver a competitive advantage in the organisation’s chosen market place (Compton, Morrissey and Nankervis, 2009). HR planning also assists managers in determining how the organisation should plan for its staffing requirements through future recruitment activities, however it is more than that. Charmine, Hartel, and Fujimoto (2010) discuss the human resource-planning framework. This involves a dynamic process that involves continuous environmental scanning, an analysis of organisational objectives as well as strategies and policies to ensure that the company has the right number of employees who...
Words: 1655 - Pages: 7
...AUDIT PLANNING PSA 200, “Overall Objectives of the independent auditor and the conduct of an audit in accordance with Philippine Standards on Auditing” “The auditor should plan and perform an audit with professional skepticism recognizing that circumstances may exist that cause the financial statements to be materially misstated.” * Overall Strategy * Audit plan Preliminary Audit Engagement 1. Perform procedures regarding the continuance of the client relationship and the specific audit engagement 2. Evaluate compliance with ethical requirements, including independence. 3. Establish an understanding of the term of engagement. Benefits of Audit Planning 1. It helps ensure that appropriate attention is devoted to important areas of the audit. 2. It aids in identifying potential problems and resolving them on a timely basis. 3. It helps ensure that the audit is properly organized, managed and performed in an effective and efficient manner. 4. It assists in the proper assignment and review of the work of the engagement team members. 5. It helps coordinate the work to be done by auditors of components and other parties involved such as experts, specialists, etc. The Overall Audit Strategy sets the Scope, Timing & Direction of the Audit SCOPE 1. The financial reporting framework 2. Industry specific reporting requirements, and 3. The locations of the components of the entity. TIMING 1. Deadlines for interim...
Words: 1154 - Pages: 5
...1 Session 4 Audit Planning; Materiality and the audit risk model Auditing: Principles and Methods 2 After studying this session you should be able to: 1. Discuss why adequate audit planning is essential 2. Make client acceptance decisions and perform initial audit planning 3. Gain an understanding of the client’s business and industry 4. Assess client business risk 5. Perform preliminary analytical procedures 6. Apply the concept of materiality to the audit 7. Define risk in auditing and the audit risk model Auditing: Principles and Methods 3 8. Consider the impact of engagement risk on acceptable audit risk 9. Discuss the relationship of risks to audit evidence 10. Answer the Review Questions Auditing: Principles and Methods 1. Audit Planning 4 Why is adequate audit planning essential? “The auditor must adequately plan the work and must properly supervise any assistants”. There are three main reasons why the auditor should properly plan engagements: to enable himself to obtain sufficient appropriate evidence, to keep audit cost reasonable and to avoid misunderstanding with the client. Auditing: Principles and Methods 1. Audit Planning 5 An important part of audit planning is assessing acceptable audit risk and inherent risk because it helps determine the amount of evidence that will need to be accumulated and staff assigned to the engagement. Acceptable audit risk is a measure of how willing the auditor is to accept that the FSs...
Words: 5316 - Pages: 22
...Practices Board. Its responsibilities are set up standards and guidance for auditing work. According to this standard, APB tries to enhance confidence on auditing process for public. ESs includes five requirements that auditors must adhere to and its primary objective is to give ‘true and fair’ opinions on financial statement. The credibility of audit opinions depends on the integrity, objectivity and independence of the auditor. Accordingly, it requires the quality of audit more stringent, especially the independence of auditors’ assurance. ES2 illustrates the guidance on some particular circumstances, which may generate threats to the independence and objectivity of auditors. ES3 states that senior positions have collaborated with audit engagement for a continuous period should be rotating. ES4 explains that there is no relationship between audit opinion and audit fees or other remuneration. ES5 shows that audit firm should consider whether non-audit service have significant effect on the threats to the auditor’s objectivity or independence. International Standards on Auditing ISA (FRS, 2009) copes with independent auditor’s overall responsibilities when implementing auditing process. These professional standards establish objectives of independent auditors together with explain the scope and nature of auditing process, which is designed to enable auditors to achieve the objectives. These standards aim at setting out essential procedures and principles that auditors should...
Words: 1844 - Pages: 8
...1) What are the steps of auditing process? Briefly describe each one of them. 1. Pre-engagement Activities Pre- engagement activities are the processes of determining risks, choosing the best team for the engaged firm and agreeing on the terms of engagement which includes the engagement letter. 2. Preliminary Planning Preliminary planning is analyzing the internal and external factors that might have an effect on the entity’s financial status. In this step, the chosen audit team gets familiar to the entity’s application systems understands the accounting process. This step, is the start of analytical procedures. 3. Develop Audit Plan Developing an audit plan consists of 5 main steps. First one is assesing the potential error level and risks. Second step is deciding on the audit approach. Third step is controlling; in this step potential errors are tested such as cutoff, valuation, completeness. Tn fourth step, substantive tests are planned. In the last step, all of the steps above are summarized and submitted to the entity. 4. Perform Audit Plan In this process, auditor performs the plans which are made in the previous step. The auditor checks the effectiveness of the audit plan. Then, substantive analytical procedures goes on. The auditor identfies the account balance and errors to be tested. An expectation of the entity’s substances are developped. The properties which requires a further imnvestigation are identified. Briefly, further...
Words: 1747 - Pages: 7
...Characteristics of MAS Engagements 1. Services are rendered for the management 2. Involves problem solving 3. Relate to the future 4. Broad in scope 5. Involves varied assignments 6. Engagements are usually non-recurring 7. Engagements mostly require highly-qualified staff 8. Human relations play a vital role in each engagement Management Consultant – refers to a person who is qualified by education, experience, technical ability, and temperament to advise/assist businessmen on a professional basis in identifying, defining, and solving specific management problems involving the planning, direction, control, and operation of the firm. Management Consultancy is not limited to CPAs. Any professional may practice the same, as long as he has the required competence, experience and technical ability to solve business problems. The practice as well as the practitioners are not licensed or regulated by the law, and there are neither admission requirements nor a board which certifies practitioners. Reasons for Hiring Management Consultants: 1. A consultant is considered independent, objective and detached to the problems faced by the organization. 2. An experienced consultant possesses special knowledge and skills required to undertake the engagement. 3. Hiring consultants will usually be less expensive to the company than hiring full-time managers. 4. A management consultant serves a catalyst for change. Consultation vs. Engagement Consultation...
Words: 1894 - Pages: 8
...Engagement checklist – Audit Engagement (20,407) I. General Audit Planning Procedures a. Client Engagement Acceptance and Continuance: Yes, No, or N/A i. Did the client accept the engagement letter and its parts b. Client Understanding: Yes, No, or N/A ii. Did the client understand the accepted engagement letter c. Audit Planning: Yes, No, or N/A iii. Did the auditor properly plan the audit in accordance with the regulations d. Fraud Considerations: Yes, No, or N/A iv. Were any fraud risks considered during the audit planning e. Information Technology Considerations: Yes, No, or N/A v. Did the auditor review any potential risks related to the IT involvement with the information f. Group Audits: Yes, No, or N/A vi. Did the auditor take in to account the group involved in the audit process g. Work Performed by a Component Auditor: Yes, No, or N/A vii. Is the auditor in compliance with the outlined auditing processes h. Auditor Specialist, If used: Yes, No, or N/A viii. Was the use of professional reference properly documented, i.e.: engineer, environmental consultant, etc. i. Internal Control and Control Risks: Yes, No, or N/A ix. Were internal controls and risks properly reviewed to ensure compliance j. Service Auditor Reports: Yes, No, or N/A x. Did the auditor compare and contrast with Service Auditor’s report ...
Words: 288 - Pages: 2
...capitalist economies, where most of them are privately owned and provide goods and services to customers in exchange for other goods, services, or money. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company. The etymology of "business" stems from the idea of being busy, and implies socially valuable and rewarding work. Business can refer to a particular organization or, more generally, to an entire market sector, e.g. "the music business". Compound forms such as agribusiness represent subsets of the word's broader meaning, which encompasses all activity by suppliers of goods and services. cognition and Motivation Important for High Performing Employees TooEmployee engagement isn’t just about the low performers. In the TLNT article, “3 Tips on How to Best Engage a High Performer” we re given some insights into the need to keep high performers involved and motivated. High performers also need a connection to the purpose of the work they perform for their organization. As the article shares: In fact, a 2013 Leadership IQ study found that in almost half of organizations middle and low performers are actually more engaged than high performers. This was based on key findings that showed high performers’ efforts largely going unrecognized while low performers reaped the benefits of constant motivation and recognition from their managers. The article offers some useful reminders about the need to not take these...
Words: 2795 - Pages: 12
