SlideShare a Scribd company logo
 Phase I - Client Acceptance
 Phase II - Planning
 Phase III – Field work/Testing and
Evidence
 Phase IV – Reporting/Evaluation and
Judgment
PREPARED BY ARMAGHANAHMED 050 3060762
EDUCATION4ALL-ARMAN.BLOGSPOT.COM
Objective:
The client
acceptance
phase of the
audit plan,
Phase I,
involves
deciding
whether to
accept a new
client or
continue with
an existing
one.
• Evaluate the client's background
and reasons for the audit.
• Determine whether the auditor is
able to meet the ethical
requirements regarding the client.
• Determine need for other
professionals.
• Communicate with predecessor
auditor;
• Prepare client proposal.
• Select staff to perform the audit,
and Obtain an engagement letter.
Procedures:
PREPARED BY ARMAGHANAHMED 050 3060762
EDUCATION4ALL-ARMAN.BLOGSPOT.COM
Objective:
Determine the
amount and
type of
evidence and
review
required to
give the
auditor
assurance that
there is no
material
misstatement
of the financial
statements.
• Perform audit procedures to understand
the entity and its environment, including
the entity’s internal control;
• Assess the risks of material
misstatements of the financial
statements.
• Determine materiality; and
• Prepare the planning memorandum and
audit program, containing the auditor’s
response to the identified risks.
Procedures
PREPARED BY ARMAGHANAHMED 050 3060762
EDUCATION4ALL-ARMAN.BLOGSPOT.COM
Objective Test for evidence supporting internal controls and the fairness of the
financial statements.
Procedures:
(1)Tests of controls;
(2) Substantive tests of transactions;
(3) Analytical procedures;
(4)Tests of details of balances.
(5) Search for unrecorded liabilities.
PREPARED BY ARMAGHANAHMED 050 3060762
EDUCATION4ALL-ARMAN.BLOGSPOT.COM
Objective: Complete the audit procedures and issue an
opinion.
Procedures:
• Evaluate governance evidence;
• Perform procedures to identify subsequent events;
• Review financial statements and other report material;
• Perform wrap-up procedures;
• Prepare Matters of Attention for Partners;
• Report to the board of directors; and
• Prepare Audit report.
PREPARED BY ARMAGHANAHMED 050 3060762
EDUCATION4ALL-ARMAN.BLOGSPOT.COM

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Audit process model

  • 1.
  • 2.  Phase I - Client Acceptance  Phase II - Planning  Phase III – Field work/Testing and Evidence  Phase IV – Reporting/Evaluation and Judgment PREPARED BY ARMAGHANAHMED 050 3060762 EDUCATION4ALL-ARMAN.BLOGSPOT.COM
  • 3. Objective: The client acceptance phase of the audit plan, Phase I, involves deciding whether to accept a new client or continue with an existing one. • Evaluate the client's background and reasons for the audit. • Determine whether the auditor is able to meet the ethical requirements regarding the client. • Determine need for other professionals. • Communicate with predecessor auditor; • Prepare client proposal. • Select staff to perform the audit, and Obtain an engagement letter. Procedures: PREPARED BY ARMAGHANAHMED 050 3060762 EDUCATION4ALL-ARMAN.BLOGSPOT.COM
  • 4. Objective: Determine the amount and type of evidence and review required to give the auditor assurance that there is no material misstatement of the financial statements. • Perform audit procedures to understand the entity and its environment, including the entity’s internal control; • Assess the risks of material misstatements of the financial statements. • Determine materiality; and • Prepare the planning memorandum and audit program, containing the auditor’s response to the identified risks. Procedures PREPARED BY ARMAGHANAHMED 050 3060762 EDUCATION4ALL-ARMAN.BLOGSPOT.COM
  • 5. Objective Test for evidence supporting internal controls and the fairness of the financial statements. Procedures: (1)Tests of controls; (2) Substantive tests of transactions; (3) Analytical procedures; (4)Tests of details of balances. (5) Search for unrecorded liabilities. PREPARED BY ARMAGHANAHMED 050 3060762 EDUCATION4ALL-ARMAN.BLOGSPOT.COM
  • 6. Objective: Complete the audit procedures and issue an opinion. Procedures: • Evaluate governance evidence; • Perform procedures to identify subsequent events; • Review financial statements and other report material; • Perform wrap-up procedures; • Prepare Matters of Attention for Partners; • Report to the board of directors; and • Prepare Audit report. PREPARED BY ARMAGHANAHMED 050 3060762 EDUCATION4ALL-ARMAN.BLOGSPOT.COM