Course IV (Audit Planning and Completion)

This 3 day course covers the best approach to how audits should be planned and completed in accordance with the relevant ISAs. Students will also look at how best to communicate with clients including the required elements of the various audit letters.

Topics covered include:

Planning

• Pre-planning – taking on new clients, independence and ethical issues
• Understanding the client and identifying risks, performing preliminary analytical review, determining materiality and considering fraud
• Assessing risk and designing an audit programme that responds to the risks
• Budgeting and writing a planning memorandum
• Planning the audit of a group
• Reconsidering the audit plan – use of controls testing or substantive analytical review as part of the audit approach
• Using the work of others

Completion

• Audit highlights memorandum
• Final analytical review
• Ensuring the file is complete and all matters have been resolved
• Preparing for clearance meetings, client communication including management letters and letters of representation
• Completing the audit of a group

All sessions will involve the completion of practical exercises and case studies and where appropriate will be completed using laptops. Depending on the audit methodology used by the student’s firm, this will involve either completing the work in an Excel workbook, or in CCH Audit Automation (both PCAS and Mercia master packs are available).