The Financial Processes - an Overview review focused on the Risk Assessment Process

1. Processe
s
Overall Review

2. 1. The Auditor Responsibility
2. The Audit Process - Overall
3. Tracker
4. Testing
5. Completion
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 2
Agenda

3. 1. The Auditor Responsibility
2. The Audit Process - Overall
3. Tracker
4. Testing
5. Completion
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 3
Agenda

4. Auditor Responsibility
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 4
Obtain Sufficient and Appropriate audit evidence to Express an
Opinion whether the FS are presented fairly in all material
respects in accordance with the relevant framework.

5. 1. The Auditor Responsibility
2. The Audit Process - Overall
3. Tracker
4. Testing
5. Completion
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 5
Agenda

6. The Audit Process - Overall
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 6
1- Engagement Setup “Pre-Engagement”
2- Risk Assessment
3- Testing
4- Completion

7. 1- Engagement Setup “Pre-
Engagement”
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 7
 Sentinel
 Client / Engagement Acceptance / Continuance (CEAC)
 Engagement Letter
 Confirmation of Independence

8. 2- Risk Assessment
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 8
 Materiality
 Significant Accounts
Possible Misstatement with Material Impact on FS
 Planning Analytical Procedures
 General Risk Assessment Procedures
 Entity and its Environment
 Entity Level Controls
 Planned Audit Approach
 Higher Level Controls
 Processes
 KPMG Specialists

9. 2- Risk Assessment
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 9
 Materiality
 Significant Accounts
Possible Misstatement with Material Impact on FS
 Planning Analytical Procedures
 General Risk Assessment Procedures
 Entity and its Environment
 Entity Level Controls
 Planned Audit Approach
 Higher Level Controls
 Processes
 KPMG Specialists

10. 2- Risk Assessment
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 10
 Materiality
 Significant Accounts
Possible Misstatement with Material Impact on FS
 Planning Analytical Procedures
 General Risk Assessment Procedures
 Entity and its Environment
 Entity Level Controls
 Planned Audit Approach
 Higher Level Controls
 Processes
 KPMG Specialists

11. 2- Risk Assessment
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 11
 Materiality
 Significant Accounts
Possible Misstatement with Material Impact on FS
 Planning Analytical Procedures
 General Risk Assessment Procedures
 Entity and its Environment
 Entity Level Controls
 Planned Audit Approach
 Higher Level Controls
 Processes
 KPMG Specialists

12. Risk Assessment - Processes
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG
network are affiliated.
12
UnderstandingThe
Processes (IARPR)
Walkthrough
What Could GoWrong?
Identify Relevant Control
Design and
Implementation
Initial Assessment of the
RoMM
Test of Operating
Effectiveness
reassess the RoMM
No Significant Risk
Identified
Significant Risk Identified
Effective
Deficien
cy
O
R
SubstantiveTesting
3:Testing

13. 1. The Auditor Responsibility
2. The Audit Process - Overall
3. Tracker
4. Testing
5. Completion
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 13
Agenda

14. Tracker:
14
Significant Risk Audit Misstatement
Significant Unusual Transactions Control Deficiency
Related Party Transactions Non-Compliance or Illegal Acts or Fraud
Other Matter

15. 1. The Auditor Responsibility
2. The Audit Process - Overall
3. Tracker
4. Testing
5. Completion
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 15
Agenda

16. Testing
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 16
 Testing of Operating Effectiveness of Controls
 Substantive Testing

17. 1. The Auditor Responsibility
2. The Audit Process - Overall
3. Tracker
4. Testing
5. Completion
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 17
Agenda

18. Completion
© 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 18
 Re-assessment of :
Materiality
ROMM
 Reporting – Performing an Opinion

19. © 2018 KPMG International Cooperative (“KPMG International”). KPMG International provides no client services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated. 19
Thanks