AuditPlanningandAnalyticalProcedures(英文版)(ppt57页)课件.pptVIP

Audit Planning andAnalytical Procedures Chapter 8 Planning Planning an Audit and Designing an Approach Planning an Audit and Designing an Approach Initial Audit Planning The Pre Engagement Arrangements: Client acceptance and retention Talking with predecessor Engagement letters Engagement team Time budget Evaluate the Acceptance or Retention of a Client. Obtain financial information- prepared by client, annual reports, SEC reports, reports to regulatory agencies, and interim reports. Inquire to clients banker, legal council, underwriter and others. Contact predecessor auditor for disagreements with client, client integrity. Determine need for special skills or unusual risk related to client. Review independence relationship to client. Talking with Predecessor The successor auditor needs permission from the client to contact the predecessor to protect client confidentiality. Predecessor can give valuable information about client integrity, significant issues, disagreements and reasons for auditor change (8K). The successor auditor will issue a report on the current year only. The prior years will be covered by reissuing the predecessors report. Engagement letters Help establish an understanding of the terms of the engagement, contract Are not required but recommended. Helps to avoid misunderstandings related to what the services include and fees Helps avoid legal liability assertions based on failure to do work that the CPA may not have contemplated. Engagement Letter Content The objectives of the engagement Management’s responsibilities The auditor’s responsibilities Any limitations of the engagement SAS 83 requires these understandings to be documented in the working papers. Full service audit team includes Engagement partner Second audit partner Audit manager Senior in charge Specialists as needed - statistical, computer, industry Tax partner Consulting service partner Second Audit Partner To have a review by a partner that is not directly responsible for keep