Auditing 521_WEEK_03课件.ppt

WEEK 03 Preliminary Audit Planning:Understanding the Auditee CHAPTER 6;Sign up Groups for  Term Project;Class Discussion 1: ACA Chapter 2 Lecture: Auditor’s Preliminary Activities – getting an audit engagement started Pre-engagement Arrangements Preliminary Understanding of Auditee’s Business, Its Environment and Its Risks Preliminary Analytical Procedures for Audit Planning Applying Analytical Procedures to Management’s Draft Financial Statements Materiality Levels for Audit Planning Class Discussion 2: EP 6.1, EP 6.2 Term Project Group Work - Time budget, materiality;Chapter 6 1. Describe the activities PAs undertake before beginning a financial statement audit engagement. 2. Explain why auditors need knowledge of the client/auditees busines, its environment, and its risks at the start of a financial statement audit. 3. Explain the purpose of preliminary analytical procedures and business risk analysis in the audit planning process. 4. Apply preliminary analytical procedures to management draft financial statement to identify areas where misstatements are most likely. 5. Explain the materiality concept, the materiality levels used for audit planning, and how these are determined. ;CLASS DISCUSSION;Pre-engagement Arrangements;Audit Engagement Acceptance and Continuance;Client Acceptance and Retention Procedures;Determining Auditability;Communication Between Predecessor and Successor Auditors;Engagement Letters;Staff Assignment;Time Budget - Planning;Example Time Budget;Time Budget - Actual;Preliminary Understanding of Auditee’s Business, Environment and Risks;Understanding the Auditee’s Business;Analytical Procedures Requirements;Types of General Analytical Procedures;Applying Analytical Procedures to Management’s Draft Financial Statements;Applying Analytical Procedures to Management’s Draft Financial Statements;Applying Analytical Procedures to Management’s Draft Financial Statements;Materiality Levels for Audit Planning;Financial Statement Materiality;