The document provides information about engagement letters in an auditing context. It discusses the purposes of engagement letters, the key information that should be included in engagement letters, factors to consider when accepting changes to engagement terms, and circumstances where engagement letters may need to be revised for recurring audits. Specifically:
1. Engagement letters confirm the appointment of the auditor, define the scope and objectives of the audit, and outline the responsibilities of the auditor and management.
2. Key information in an engagement letter includes the scope and objective of the audit, applicable financial reporting framework, responsibilities of the auditor and management, expected audit report, and statement that the report may differ from expectations.
3. Auditors should only accept
This document outlines requirements for audit documentation according to standards set by the PCAOB. It defines audit documentation as the written record of the audit work performed, evidence obtained, and conclusions reached. Audit documentation supports the auditor's conclusions and representations in their report. It must contain sufficient information for another auditor to understand the work performed and conclusions reached. The documentation must also include any significant issues identified and how they were addressed. Audit documentation must be retained for seven years after the report release date.
The document discusses audit planning, which involves developing an overall strategy and detailed approach for an audit. It covers the stages of audit planning such as initial planning, new client investigation, understanding the client's business, and assessing audit risk. Audit risk is influenced by inherent risk, control risk, and detection risk. Analytical procedures are also discussed as a way for auditors to understand relationships between financial and non-financial information.
Companies Act, 2013-Presentation on Accounts & AuditSASPARTNERS
A detailed presentation prepared by SAS Partners Team, Chennai which gives an insight to the important provisions on Chapter IX - Accounts & Audit under Companies Act, 2013. This can be used by the Corporates, Professionals and Students as a ready reckoner for better understanding of the provisions and easy reference.
This document discusses the concept of materiality in auditing. It defines materiality and outlines a three-step process for considering materiality: 1) determine planning materiality, usually using benchmarks like 5% of pre-tax income; 2) determine tolerable misstatement levels for accounts; 3) evaluate audit findings by aggregating misstatements and comparing to planning materiality. If aggregate misstatements exceed planning materiality, the client needs to adjust financial statements or the auditor may issue a qualified opinion. Materiality is assessed based on how a reasonable user would be influenced by misstatements.
This presentation explains about the meaning as well as various types of audit report which an auditor has present in his books of accounts for the sake of the company's shareholders and various other groups.
The document discusses the auditor's procedures for auditing cash balances. It notes the auditor's primary concerns regarding cash are existence, completeness, physical control, and presentation/disclosure. Key procedures discussed include obtaining cutoff bank statements, preparing schedules of bank transfers, obtaining or preparing bank reconciliations, confirming cash balances held by third parties such as banks, and tests to detect possible kiting between bank accounts. It provides an example of how kiting works and notes reconciliation may not detect unrecorded deposits/checks or incorrectly recorded amounts.
This document is an International Standard on Auditing (UK) regarding going concern. It outlines the auditor's responsibilities related to evaluating management's assessment of an entity's ability to continue as a going concern. Key points include:
- The auditor must obtain sufficient audit evidence to conclude on management's use of the going concern basis and whether a material uncertainty exists about the entity's ability to continue as a going concern.
- The auditor evaluates management's assessment, covering the same period used by management, which must be at least 12 months from the financial statement date.
- If events or conditions are identified that cast doubt on going concern, the auditor performs additional procedures to determine if a material uncertainty exists, including evaluating management
This document outlines requirements for audit documentation according to standards set by the PCAOB. It defines audit documentation as the written record of the audit work performed, evidence obtained, and conclusions reached. Audit documentation supports the auditor's conclusions and representations in their report. It must contain sufficient information for another auditor to understand the work performed and conclusions reached. The documentation must also include any significant issues identified and how they were addressed. Audit documentation must be retained for seven years after the report release date.
The document discusses audit planning, which involves developing an overall strategy and detailed approach for an audit. It covers the stages of audit planning such as initial planning, new client investigation, understanding the client's business, and assessing audit risk. Audit risk is influenced by inherent risk, control risk, and detection risk. Analytical procedures are also discussed as a way for auditors to understand relationships between financial and non-financial information.
Companies Act, 2013-Presentation on Accounts & AuditSASPARTNERS
A detailed presentation prepared by SAS Partners Team, Chennai which gives an insight to the important provisions on Chapter IX - Accounts & Audit under Companies Act, 2013. This can be used by the Corporates, Professionals and Students as a ready reckoner for better understanding of the provisions and easy reference.
This document discusses the concept of materiality in auditing. It defines materiality and outlines a three-step process for considering materiality: 1) determine planning materiality, usually using benchmarks like 5% of pre-tax income; 2) determine tolerable misstatement levels for accounts; 3) evaluate audit findings by aggregating misstatements and comparing to planning materiality. If aggregate misstatements exceed planning materiality, the client needs to adjust financial statements or the auditor may issue a qualified opinion. Materiality is assessed based on how a reasonable user would be influenced by misstatements.
This presentation explains about the meaning as well as various types of audit report which an auditor has present in his books of accounts for the sake of the company's shareholders and various other groups.
The document discusses the auditor's procedures for auditing cash balances. It notes the auditor's primary concerns regarding cash are existence, completeness, physical control, and presentation/disclosure. Key procedures discussed include obtaining cutoff bank statements, preparing schedules of bank transfers, obtaining or preparing bank reconciliations, confirming cash balances held by third parties such as banks, and tests to detect possible kiting between bank accounts. It provides an example of how kiting works and notes reconciliation may not detect unrecorded deposits/checks or incorrectly recorded amounts.
This document is an International Standard on Auditing (UK) regarding going concern. It outlines the auditor's responsibilities related to evaluating management's assessment of an entity's ability to continue as a going concern. Key points include:
- The auditor must obtain sufficient audit evidence to conclude on management's use of the going concern basis and whether a material uncertainty exists about the entity's ability to continue as a going concern.
- The auditor evaluates management's assessment, covering the same period used by management, which must be at least 12 months from the financial statement date.
- If events or conditions are identified that cast doubt on going concern, the auditor performs additional procedures to determine if a material uncertainty exists, including evaluating management
http://www.thewrightcpa.com Wright and Associates, CPA's are highly proficient at E-Auditing, and specialize in serving Non-Profits and Colleges. Check us out!
This document outlines a due diligence checklist for reviewing a company. It includes sections to review the company's corporate organization, publicly filed documents, financial statements and forecasts, taxes, audits, real property and equipment, intangible assets, products, and the overall industry. The checklist contains over 50 individual items to evaluate the company's legal, financial, operational, and competitive position.
The document discusses the liabilities and legal responsibilities of auditors. It covers professional negligence, duties owed, and potential breaches. It outlines civil and criminal liabilities under the Companies Act, 2013 for misstatements in prospectuses. It also discusses liabilities under the Income Tax Act, 1961 for directly or indirectly assisting with tax evasion. Punishments include fines and imprisonment. The key responsibilities of auditors are to conduct audits with care and avoid negligence that could mislead shareholders or other parties.
1. Forensic accounting was first coined in 1946 and involves using accounting skills to investigate financial fraud and support litigation.
2. Forensic accounting in India assists with investigative accounting for employee theft and securities fraud, and litigation support by quantifying damages.
3. The Serious Fraud Investigation Office (SFIO) was established to investigate complex frauds using multidisciplinary experts. Notable SFIO cases include the Satyam scam and Deccan Chronicle Holding Ltd.
Dokumen tersebut membahas proses audit mulai dari penerimaan klien baru, perencanaan audit, pelaksanaan audit, hingga penyelesaian audit. Beberapa langkah penting dalam proses audit adalah menilai klien baru dan auditor sebelumnya, menentukan cakupan dan risiko audit, melakukan pengujian atas pengendalian internal dan akun-akun penting, serta mengevaluasi hasil audit untuk diterbitkannya laporan.
An auditor's report formally presents the results of an audit. It assesses whether a company's financial statements are fairly presented and comply with accounting standards. The report includes sections identifying the statements audited, the auditor's responsibilities, and their opinion on whether the statements give a true and fair view. Auditors can issue unqualified, qualified, disclaimer of opinion, adverse opinion, or exception reports depending on any issues identified during the audit.
CIBIL is India's first credit information company, founded in 2000 to help financial institutions make more informed lending decisions. It collects credit information reported by banks and lenders to generate credit reports and scores on individuals and businesses. CIBIL is majority owned by TransUnion International, with several major Indian banks also serving as shareholders. CIBIL's credit reports and scores are now an important part of the loan application process in India, helping lenders quickly evaluate creditworthiness and helping consumers understand their own credit standing.
Discover the five easiest steps for cash to accrual conversion! Clear your confusion fro conversion. Transtutors presents five steps to follow to convert cash accounting into accrual accounting.
For accounting homework help or any type of questions on accounting, ask Transtutors' experts available 24x7 to help students.
www.transtutors.com
The document discusses the implementation of forensic accounting techniques for fraud detection in Lagos, Nigeria. It begins with introducing forensic accounting and its importance in litigation support and fraud investigation. Some key forensic accounting concepts discussed include types of forensic accounting, skills required, and its scope. The document then covers concepts of fraud and fraud detection, including definitions, types of fraud, and techniques for detection. It presents two fraud cases investigated in Lagos, Nigeria using forensic accounting methods including statistical data analysis and artificial intelligence techniques for detection. The document aims to demonstrate how forensic accounting has aided in detecting various kinds of fraud in Nigeria.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
This document summarizes auditing procedures for the sales and collection cycle. It outlines the key accounts, business functions, documents, and records involved in sales, cash receipts, sales returns and allowances, bad debts, and write-offs. It then describes the methodology, objectives, and types of tests auditors perform to test controls and balances, including existence, completeness, accuracy, classification, timing, and posting of transactions. The tests involve examining documents, comparing entries to price lists, tracing postings, confirming balances, and reviewing aging analyses and write-offs.
The document summarizes standards on auditing (SA) 700 and SA 705 regarding forming an opinion on financial statements and reporting.
SA 700 deals with the auditor's responsibility to form an opinion on financial statements and the structure of the audit report. It requires the auditor to evaluate accounting policies, estimates, disclosures, and determine if statements are free of material misstatement.
SA 705 covers circumstances requiring a modified audit opinion, including qualified, adverse, and disclaimer opinions depending on the pervasiveness of misstatements or inability to obtain evidence. It defines material misstatements and explains how they can arise from inappropriate accounting policies or application.
What are the post listing compliance norms for SME entities?DVSResearchFoundatio
The document summarizes post-listing compliance norms for small and medium enterprises (SMEs) listed on SME exchanges in India. It discusses requirements for further capital issues, green shoe options, migration to the main board, further public offerings, and mandatory and voluntary disclosures. Key requirements include making full disclosures for further issues, obtaining shareholder approval for green shoe options, complying with eligibility criteria for migration, and submitting regular financial disclosures and statements on the use of IPO proceeds.
U1 PRIMERA UNIDAD - 2024 - Contabilidad Financierasophialeon9
El documento presenta una unidad sobre estados financieros básicos. Explica conceptos como estado de resultados, estado de situación financiera, estado de flujos de efectivo y estado de cambios en el patrimonio neto. Además, introduce principios contables e indicadores financieros.
ED PSAK 62 dan PSAK terkait lainnya memperkenalkan perubahan definisi kontrak asuransi dan pembagian kontrak menjadi asuransi, reasuransi, dan kontrak investasi. Standar ini mengatur pengakuan, pengukuran, dan pengungkapan untuk masing-masing jenis kontrak. ED PSAK 62 berlaku efektif 1 Januari 2012.
This document defines auditing and discusses key auditing concepts like audit evidence, internal and external evidence, compliance and substantive procedures. It explains that an audit is an independent examination of financial information to express an opinion. Audit evidence refers to any information used by the auditor to draw conclusions. There are different types of evidence, with internal evidence being less reliable than external evidence from outside the entity. Compliance procedures check the internal control system, while substantive procedures check transaction accuracy and balances.
The document discusses two auditing and assurance standards:
1. AAS 19 discusses the auditor's responsibility regarding subsequent events that occur between the balance sheet date and the auditor's report date, and how they should be considered and accounted for.
2. AAS 34 establishes additional standards and guidance for audit evidence regarding specific financial statement items, including attendance at physical inventory counts, inquiries about litigation and claims, valuation and disclosure of long-term investments, and segment information disclosures. It provides requirements for procedures in these areas to obtain sufficient appropriate audit evidence.
The document outlines audit working paper purposes, contents, organization and types of audit evidence. It discusses how working papers support the audit opinion, substantiate competence, guide future audits and evaluate staff. Contents include entity information, risk assessments, audit programs, analyses, conclusions and representations. Organization includes permanent files on the client and current files indexing planning, compliance, balances and income/expenses. Evidence includes physical counts, confirmations, representations, documents, observation, accuracy checks and comparisons.
This document provides an overview of audit planning topics including:
- The importance of audit planning to obtain sufficient evidence and keep costs reasonable.
- Key planning activities like understanding the client's business, assessing risks, and developing responses.
- How inherent, control, and detection risks contribute to overall audit risk.
- The use of analytical procedures during planning, fieldwork, and completion to identify unusual fluctuations.
- The three phases of audit work: planning, interim, and final, and how they relate to risk assessment and evidence gathering.
The document discusses International Standards on Review Engagements (ISREs) for conducting review engagements. It defines a review engagement as providing moderate assurance, with procedures deliberately reduced from an audit. Key differences from an audit are the level of assurance is limited rather than reasonable, and procedures are inquiries and analytical reviews rather than tests of controls or other substantive procedures.
The document outlines the objectives, procedures, and report for a review engagement. The objective is to obtain limited assurance to provide a negative conclusion about whether anything has come to the auditor's attention that causes them to believe the financial statements are not fairly presented. Procedures include inquiry of management, analytical reviews, agreeing amounts to records, and obtaining
Planning an audit involves establishing the overall audit strategy and developing an audit plan. The audit strategy sets the scope, timing, and direction of the audit at a high level. The audit plan includes the nature, timing, and extent of specific audit procedures. There are additional considerations for initial audit engagements, such as obtaining an understanding of opening balances and predecessor auditor communications. Interim audits are performed before the year-end and allow for earlier issue identification, while final audits conclude with an opinion on the full-year financial statements.
http://www.thewrightcpa.com Wright and Associates, CPA's are highly proficient at E-Auditing, and specialize in serving Non-Profits and Colleges. Check us out!
This document outlines a due diligence checklist for reviewing a company. It includes sections to review the company's corporate organization, publicly filed documents, financial statements and forecasts, taxes, audits, real property and equipment, intangible assets, products, and the overall industry. The checklist contains over 50 individual items to evaluate the company's legal, financial, operational, and competitive position.
The document discusses the liabilities and legal responsibilities of auditors. It covers professional negligence, duties owed, and potential breaches. It outlines civil and criminal liabilities under the Companies Act, 2013 for misstatements in prospectuses. It also discusses liabilities under the Income Tax Act, 1961 for directly or indirectly assisting with tax evasion. Punishments include fines and imprisonment. The key responsibilities of auditors are to conduct audits with care and avoid negligence that could mislead shareholders or other parties.
1. Forensic accounting was first coined in 1946 and involves using accounting skills to investigate financial fraud and support litigation.
2. Forensic accounting in India assists with investigative accounting for employee theft and securities fraud, and litigation support by quantifying damages.
3. The Serious Fraud Investigation Office (SFIO) was established to investigate complex frauds using multidisciplinary experts. Notable SFIO cases include the Satyam scam and Deccan Chronicle Holding Ltd.
Dokumen tersebut membahas proses audit mulai dari penerimaan klien baru, perencanaan audit, pelaksanaan audit, hingga penyelesaian audit. Beberapa langkah penting dalam proses audit adalah menilai klien baru dan auditor sebelumnya, menentukan cakupan dan risiko audit, melakukan pengujian atas pengendalian internal dan akun-akun penting, serta mengevaluasi hasil audit untuk diterbitkannya laporan.
An auditor's report formally presents the results of an audit. It assesses whether a company's financial statements are fairly presented and comply with accounting standards. The report includes sections identifying the statements audited, the auditor's responsibilities, and their opinion on whether the statements give a true and fair view. Auditors can issue unqualified, qualified, disclaimer of opinion, adverse opinion, or exception reports depending on any issues identified during the audit.
CIBIL is India's first credit information company, founded in 2000 to help financial institutions make more informed lending decisions. It collects credit information reported by banks and lenders to generate credit reports and scores on individuals and businesses. CIBIL is majority owned by TransUnion International, with several major Indian banks also serving as shareholders. CIBIL's credit reports and scores are now an important part of the loan application process in India, helping lenders quickly evaluate creditworthiness and helping consumers understand their own credit standing.
Discover the five easiest steps for cash to accrual conversion! Clear your confusion fro conversion. Transtutors presents five steps to follow to convert cash accounting into accrual accounting.
For accounting homework help or any type of questions on accounting, ask Transtutors' experts available 24x7 to help students.
www.transtutors.com
The document discusses the implementation of forensic accounting techniques for fraud detection in Lagos, Nigeria. It begins with introducing forensic accounting and its importance in litigation support and fraud investigation. Some key forensic accounting concepts discussed include types of forensic accounting, skills required, and its scope. The document then covers concepts of fraud and fraud detection, including definitions, types of fraud, and techniques for detection. It presents two fraud cases investigated in Lagos, Nigeria using forensic accounting methods including statistical data analysis and artificial intelligence techniques for detection. The document aims to demonstrate how forensic accounting has aided in detecting various kinds of fraud in Nigeria.
Audit working papers are documents prepared or obtained by auditors that provide evidence of the audit work performed. They include information used to plan and conduct the audit, as well as evidence to support the auditor's opinion. Working papers serve several purposes, such as providing evidence of compliance with auditing standards, supporting the conclusions in the audit report, and allowing for review of the audit work. They must be organized, indexed, and signed or initialed by the preparer and reviewer. Working papers are the property of the auditing firm but may be subpoenaed by a court.
This document summarizes auditing procedures for the sales and collection cycle. It outlines the key accounts, business functions, documents, and records involved in sales, cash receipts, sales returns and allowances, bad debts, and write-offs. It then describes the methodology, objectives, and types of tests auditors perform to test controls and balances, including existence, completeness, accuracy, classification, timing, and posting of transactions. The tests involve examining documents, comparing entries to price lists, tracing postings, confirming balances, and reviewing aging analyses and write-offs.
The document summarizes standards on auditing (SA) 700 and SA 705 regarding forming an opinion on financial statements and reporting.
SA 700 deals with the auditor's responsibility to form an opinion on financial statements and the structure of the audit report. It requires the auditor to evaluate accounting policies, estimates, disclosures, and determine if statements are free of material misstatement.
SA 705 covers circumstances requiring a modified audit opinion, including qualified, adverse, and disclaimer opinions depending on the pervasiveness of misstatements or inability to obtain evidence. It defines material misstatements and explains how they can arise from inappropriate accounting policies or application.
What are the post listing compliance norms for SME entities?DVSResearchFoundatio
The document summarizes post-listing compliance norms for small and medium enterprises (SMEs) listed on SME exchanges in India. It discusses requirements for further capital issues, green shoe options, migration to the main board, further public offerings, and mandatory and voluntary disclosures. Key requirements include making full disclosures for further issues, obtaining shareholder approval for green shoe options, complying with eligibility criteria for migration, and submitting regular financial disclosures and statements on the use of IPO proceeds.
U1 PRIMERA UNIDAD - 2024 - Contabilidad Financierasophialeon9
El documento presenta una unidad sobre estados financieros básicos. Explica conceptos como estado de resultados, estado de situación financiera, estado de flujos de efectivo y estado de cambios en el patrimonio neto. Además, introduce principios contables e indicadores financieros.
ED PSAK 62 dan PSAK terkait lainnya memperkenalkan perubahan definisi kontrak asuransi dan pembagian kontrak menjadi asuransi, reasuransi, dan kontrak investasi. Standar ini mengatur pengakuan, pengukuran, dan pengungkapan untuk masing-masing jenis kontrak. ED PSAK 62 berlaku efektif 1 Januari 2012.
This document defines auditing and discusses key auditing concepts like audit evidence, internal and external evidence, compliance and substantive procedures. It explains that an audit is an independent examination of financial information to express an opinion. Audit evidence refers to any information used by the auditor to draw conclusions. There are different types of evidence, with internal evidence being less reliable than external evidence from outside the entity. Compliance procedures check the internal control system, while substantive procedures check transaction accuracy and balances.
The document discusses two auditing and assurance standards:
1. AAS 19 discusses the auditor's responsibility regarding subsequent events that occur between the balance sheet date and the auditor's report date, and how they should be considered and accounted for.
2. AAS 34 establishes additional standards and guidance for audit evidence regarding specific financial statement items, including attendance at physical inventory counts, inquiries about litigation and claims, valuation and disclosure of long-term investments, and segment information disclosures. It provides requirements for procedures in these areas to obtain sufficient appropriate audit evidence.
The document outlines audit working paper purposes, contents, organization and types of audit evidence. It discusses how working papers support the audit opinion, substantiate competence, guide future audits and evaluate staff. Contents include entity information, risk assessments, audit programs, analyses, conclusions and representations. Organization includes permanent files on the client and current files indexing planning, compliance, balances and income/expenses. Evidence includes physical counts, confirmations, representations, documents, observation, accuracy checks and comparisons.
This document provides an overview of audit planning topics including:
- The importance of audit planning to obtain sufficient evidence and keep costs reasonable.
- Key planning activities like understanding the client's business, assessing risks, and developing responses.
- How inherent, control, and detection risks contribute to overall audit risk.
- The use of analytical procedures during planning, fieldwork, and completion to identify unusual fluctuations.
- The three phases of audit work: planning, interim, and final, and how they relate to risk assessment and evidence gathering.
The document discusses International Standards on Review Engagements (ISREs) for conducting review engagements. It defines a review engagement as providing moderate assurance, with procedures deliberately reduced from an audit. Key differences from an audit are the level of assurance is limited rather than reasonable, and procedures are inquiries and analytical reviews rather than tests of controls or other substantive procedures.
The document outlines the objectives, procedures, and report for a review engagement. The objective is to obtain limited assurance to provide a negative conclusion about whether anything has come to the auditor's attention that causes them to believe the financial statements are not fairly presented. Procedures include inquiry of management, analytical reviews, agreeing amounts to records, and obtaining
Planning an audit involves establishing the overall audit strategy and developing an audit plan. The audit strategy sets the scope, timing, and direction of the audit at a high level. The audit plan includes the nature, timing, and extent of specific audit procedures. There are additional considerations for initial audit engagements, such as obtaining an understanding of opening balances and predecessor auditor communications. Interim audits are performed before the year-end and allow for earlier issue identification, while final audits conclude with an opinion on the full-year financial statements.
1.)Four Types of Audit Report by Independent Auditors
2.)The Steps to be Done by the Auditors Before They Receive New Engagement With Clients
3.)The Contents Emphasis in the Audit Engagement
The group auditor is responsible for expressing an opinion on the group financial statements. A group audit involves auditing the financial statements of a holding company and its subsidiaries. It is considered high risk due to consolidation adjustments and involvement of component auditors. The group auditor must obtain an understanding of components, assess risk, determine materiality and decide the type of work to be performed on each component. The group auditor relies on work of component auditors and must evaluate their competence and independence before placing reliance. Effective communication between group and component auditors is important.
This document provides an overview of external confirmations as an audit procedure. It defines external confirmation as obtaining evidence directly from a third party in written form. External confirmations are commonly used to verify information with debtors, creditors, banks, lawyers, and those holding company assets/investments. The document outlines factors to consider when using confirmations, such as timing, sample selection, request design. It distinguishes between positive and negative confirmation requests and the risks of each. It also describes audit procedures to follow up on responses, such as investigating exceptions or non-responses to positive confirmations.
The SEC Chief Accountant discussed considerations for adopting new GAAP standards on revenue recognition, leases and credit losses. He stressed the importance of effective audit committee oversight of the adoption process and thoughtful planning by management for new revenue standard disclosures. The Chief Accountant also emphasized the need for adequate accounting transition disclosures and concurrent implementation of the new standards.
The document provides an overview of key concepts in auditing based on a study notes chapter. It discusses:
1) The components of a complete set of financial statements including the balance sheet, income statement, cash flow statement, statement of changes in equity, and notes to the accounts.
2) The two main types of financial reporting frameworks - compliance frameworks and fair presentation frameworks - and the concept of a true and fair view.
3) The responsibilities of various parties in an audit including management, those charged with governance, auditors, and stakeholders. It also discusses the expectation gap faced by auditors.
4) The scope of an audit and essentials for proper audit conduct including professional judgement, professional
This SEC in Focus includes remarks from SEC Chairman Jay Clayton on cybersecurity disclosures in SEC filings, recent guidance on pay ratio disclosure requirements, regulatory relief for companies and individuals affected by recent hurricanes, staff clarifications about its nonpublic review program and recent trends in SEC staff comments on non-GAAP measures and other topics.
This document provides answers to 18 questions about auditing reports. Key points include:
- Auditor's reports are important to inform users of the auditor's opinion on whether financial statements are fairly presented. Standard wording improves communication.
- The seven parts of a standard unqualified report are: title, address, intro paragraph, scope paragraph, opinion paragraph, CPA firm name, and date.
- The scope paragraph describes what the auditor did and provides a factual statement about the audit.
- The opinion paragraph states the auditor's conclusions based on the audit results.
- Different types of opinions (unqualified, qualified, adverse, disclaimer) are issued depending on circumstances like scope limitations or depart
This document outlines guidelines and procedures for selecting auditors and reviewing audit reports for development projects funded by loans. It discusses:
1) The purpose of audits is to provide accountability and credibility to financial statements, identify internal control weaknesses, and verify compliance with loan terms.
2) The assessment of proposed auditors includes evaluating their capacity and independence.
3) Borrowers are obligated to submit audit reports by deadlines outlined in loan agreements and to address any issues raised in the reports. Non-compliance can result in sanctions.
(1) The document provides a link to download quizzes for DeVry University's ACCT 444 course for weeks 1 through 5.
(2) It includes sample multiple choice questions from the quizzes covering topics like auditing standards, auditor independence, and Sarbanes-Oxley requirements.
(3) Students who purchase access to the quizzes through the provided link can help prepare for their ACCT 444 exams.
Legal requirements (revised notes and case studies) - COMPLIANCE WITH LEGAL R...MUHAMMAD HUZAIFA CHAUDHARY
This document discusses compliance with legal requirements for statutory auditors under the Companies Act, 2017. It covers the appointment and removal of statutory auditors, their rights and duties, and qualifications.
The key points are:
- Appointment of first auditors is done by the board within 90 days, and subsequent auditors are appointed by members at the AGM. SECP can appoint auditors if the company fails to do so.
- Removal of auditors requires a special resolution by members. Procedures for changing auditors at the AGM involve recommendations by the board and members at least 7 days prior.
- Statutory auditors have rights to company information and attendance at meetings. They
This document provides an overview of the homework assignments for the entire DeVry ACCT 555 course. It lists the weekly homework assignments, which include completing problems from the course textbook and answering multiple choice questions. The document directs students to external websites for more details on the course content and assignments.
The document discusses the auditor's responsibility to consider fraud and error in an audit of financial statements. It defines fraud and error, noting that misstatements can arise intentionally from fraud or unintentionally from error. The primary responsibility for preventing and detecting fraud and error rests with management and those charged with governance of the entity. As part of an audit conducted in accordance with BSAs, the auditor is responsible for obtaining reasonable assurance about whether the financial statements are free from material misstatement due to fraud or error, though an audit cannot guarantee the detection of fraud. The auditor's responsibilities are limited by the inherent limitations of an audit.
2017 AICPA Conference Compendium - EY PublicationAzhar Qureshi
The document provides a summary of discussions at the annual AICPA Conference on Current SEC and PCAOB Developments regarding financial reporting topics and emerging issues. Key highlights included:
- The SEC staff said they will respect reasonable judgments made in applying new standards on revenue, leases, and credit losses and emphasized the importance of transition disclosures.
- Representatives from the SEC, FASB, IASB, and PCAOB discussed their focus on implementation of new standards and continued standard-setting efforts.
- SEC Chairman Clayton and Chief Accountant Bricker said audit committees should focus on critical audit matters, new standards implementation, and cybersecurity risks.
The document discusses the external audit process for IFAD-funded projects. It covers the objectives, types, roles, requirements, and outputs of the external audit. The key points are:
- The external audit examines financial statements, accounting systems, transactions, and internal controls to provide assurance of accountability and compliance.
- It includes a financial audit opinion, compliance audit report, and management letter identifying internal control weaknesses.
- The borrower/grantee appoints auditors, submits audit reports to IFAD, and implements recommendations while IFAD monitors the process.
- Audit reports include opinions on financial statements and use of special accounts, and indicate any ineligible expenditures.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
-------------------------------------------------------------------------------
Find out more about ISO training and certification services
Training: ISO/IEC 27001 Information Security Management System - EN | PECB
ISO/IEC 42001 Artificial Intelligence Management System - EN | PECB
General Data Protection Regulation (GDPR) - Training Courses - EN | PECB
Webinars: https://pecb.com/webinars
Article: https://pecb.com/article
-------------------------------------------------------------------------------
For more information about PECB:
Website: https://pecb.com/
LinkedIn: https://www.linkedin.com/company/pecb/
Facebook: https://www.facebook.com/PECBInternational/
Slideshare: http://www.slideshare.net/PECBCERTIFICATION
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Your Skill Boost Masterclass: Strategies for Effective Upskilling
ENGAGEMENT LETTER
1. Auditing – Study Notes Chapter 8 Engagement Letter
CHAPTER EIGHT
ENGAGEMENT LETTER
LLOO ##** LLEEAARRNNIINNGG OOBBJJCCTTIIVVEE
IICCAAPP''SS SSTTUUDDYY TTEEXXTT
RREEFFEERREENNCCEE****
LLOO 11
✯✯
PPUURRPPOOSSEESS OOFF AAUUDDIITT EENNGGAAGGEEMMEENNTT LLEETTTTEERR
22..22..22
LLOO 22
✯✯✯✯
FFOORRMM AANNDD CCOONNTTEENNTTSS OOFF EENNGGAAGGEEMMEENNTT LLEETTTTEERR
LLOO 33
✯✯✯✯✯✯
AACCCCEEPPTTAANNCCEE OOFF CCHHAANNGGEE IINN TTHHEE TTEERRMMSS OOFF AAUUDDIITT
EENNGGAAGGEEMMEENNTT
LLOO 44
✯✯✯✯
EENNGGAAGGEEMMEENNTT LLEETTTTEERR OONN RREECCUURRRRIINNGG AAUUDDIITTSS
*Explanation of Symbol:
Symbol ✯✯ shows important of the concept from exam point of view.
If a concept is tagged with three stars i.e. ✯✯✯✯✯✯, it is very very important concept. Such concepts should be focused
most during preparation, should be revised atleast 10 times in the last month before exam, and should be revised
first on last day before exam.
If a concept is tagged with two stars i.e. ✯✯✯✯, it is very important concept. Such concepts should be focused highly
during preparation, should be revised atleast 6 times in the last month before exam, and should be revised after
three-star concepts on last day before exam.
If a concept is tagged with single star i.e. ✯✯, it is important concept. Such concepts should be focused moderately
during preparation, should be revised atleast 3 times in the last month before exam, and should be revised after
two-star concepts on last day before exam.
((NNoottee tthhaatt nnoonnee ooff tthhee ccoonncceepptt iiss uunniimmppoorrttaanntt,, tthheerreeffoorree nnoonnee sshhoouulldd bbee sskkiippppeedd))
***Explanation of Reference:
First digit in Study Text’s Reference represents chapter number, second and third digits represents
section and sub-section number. Contents in brackets (if any) represent part of the sub-section
which is covered by the learning objective.
Coverage from Question Bank:
After completion of this chapter, you will be able to attempt following questions in ICAP's Question
Bank:
Question # in ICAP’s
Question Bank
Type of Question
Question # in ICAP’s
Question Bank
Type of Question
Q. # 16a (Engagement letter) Concept Review Question Q. # 27 (Changing terms) Concept Review Question
Q. # 17b (Shahid Corporation) Concept Review Question Q. # 28 (EL) Concept Review Question
1 By: Muhammad Asif, ACA
2. Auditing – Study Notes Chapter 8 Engagement Letter
LLOO 11:: PPUURRPPOOSSEESS//OOBBJJEECCTTIIVVEESS OOFF AAUUDDIITT EENNGGAAGGEEMMEENNTT LLEETTTTEERR:: ✯✯
Audit Engagement Letter:
Engagement letter is a written agreement between auditor and client (through appropriate
representative e.g. CFO, CEO) on terms and conditions of audit engagement.
Purposes of Engagement Letter:
It confirms appointment by client and acceptance by auditor and constitutes a contract
between them.
It removes misunderstanding between auditor and client on scope of audit and their
respective responsibilities.
CONCEPT REVIEW QUESTION
List the objects of the engagement letter. Indicate who writes the letter to whom it is written and
the time when it is written.
(CA Inter–Spring 1991)
LLOO 22:: FFOORRMM AANNDD CCOONNTTEENNTTSS OOFF EENNGGAAGGEEMMEENNTT LLEETTTTEERR:: ✯✯✯✯
Audit Engagement Letter shall include:
a) The objective and scope of the audit;
b) Identification of the applicable financial reporting framework;
c) The responsibilities of the auditor;
d) The responsibilities of management (also called Premise);
e) Expected form and content of report to be issued by the auditor and
f) A statement that there may be circumstances in which a report may be different from its
expected form and content.
An audit engagement letter may also include following:
a) Elaboration of the scope of the audit.
b) Inherent limitations of an audit
c) Inherent limitations of internal control.
d) Arrangements regarding the planning and performance of the audit, including composition
of the audit team and timing.
e) Fee or Basis of fee.
f) Agreement of management to inform the auditor of subsequent events affecting financial
statements (after date of auditor’s report till issuance of financial statements).
g) The expectation that management will provide written representation letter.
h) Reference to any other communication as a result of the audit engagement (e.g. Letter of
Weakness).
i) Arrangements concerning involvement of predecessor auditor, component auditor, expert,
internal auditor, quality control reviewer.
CONCEPT REVIEW QUESTION
List the important matters that are required to be included in an audit engagement letter.
(06 marks)
(CA Inter, Autumn 2012)
2 By: Muhammad Asif, ACA
3. Auditing – Study Notes Chapter 8 Engagement Letter
List the principal items to be agreed in an engagement letter between an assurance firm and a
person commissioning an assurance engagement. (02 marks)
(ICAEW - 2006 March)
LLOO 33:: AACCCCEEPPTTAANNCCEE OOFF CCHHAANNGGEE IINN TTHHEE TTEERRMMSS OOFF AAUUDDIITT EENNGGAAGGEEMMEENNTT:: ✯✯✯✯✯✯
Circumstances leading to change in terms of audit engagement:
Client may request auditor to change terms of the audit engagement as a result of:
a change in circumstances affecting the need for the service,
a misunderstanding as to the nature of service originally requested, or
a restriction on the scope of the audit engagement.
Factors to be considered by auditor before accepting change:
If, prior to completing the audit engagement, auditor is requested to change the terms of
engagement, auditor shall consider:
1. whether there is a reasonable justification to do so, and
2. legal or contractual implications of the change.
A change in circumstances that affects the need for the service or a misunderstanding as to nature
of the service originally requested may be a reasonable justification. In contrast, a change may not
be reasonable if it relates to information that is incorrect, incomplete or otherwise unsatisfactory.
Acceptance of Change by Auditor:
If auditor accepts the change:
1. Revised terms of engagement shall be agreed.
2. Procedures to be performed and Report to be issued shall be according to revised engagement.
3. Report shall NOT refer to:
Original audit engagement or
Any procedures performed in original audit engagement
If auditor does not accept the change:
Auditor shall continue to perform the audit engagement as per original terms of engagement.
If management does not permit auditor to continue original engagement, it will be scope limitation
whose effect is pervasive. Auditor shall withdraw from engagement (if withdrawal is possible and
practicable). If withdrawal is not possible and practicable, auditor shall express disclaimer of
opinion on financial statements.
CONCEPT REVIEW QUESTION
An auditor may agree to a change in the terms of engagement provided there is a reasonable
justification for doing so.
Required:
(a) List the circumstances in which the management may request the auditor to change the terms of
an audit engagement.
(b) What factors should be considered by the auditor before accepting a change in the terms of the
engagement?
3 By: Muhammad Asif, ACA
4. Auditing – Study Notes Chapter 8 Engagement Letter
(c) List the steps that the auditor should consider, if he is unable to agree to a change in the terms of
engagement. (09 marks)
(CA Inter, Spring 2012)
LLOO 44:: EENNGGAAGGEEMMEENNTT LLEETTTTEERR OONN RREECCUURRRRIINNGG AAUUDDIITTSS:: ✯✯✯✯
On recurring audit, auditor shall assess whether there is need to send fresh engagement letter to
remind management of the existing terms of the engagement or due to changes in circumstances.
Following factors may indicate that above is appropriate:
1) Any indication that client misunderstands the objective and scope of the audit.
2) A recent change in senior management or ownership of entity.
3) A change in legal or regulatory requirements.
4) A significant change in nature or size of entity’s business.
5) A change in applicable financial reporting framework of entity.
6) A change in other reporting requirements
7) Any revised or special terms of the audit engagement.
CONCEPT REVIEW QUESTION
Is it necessary for an audit firm to issue an engagement letter every year in case of a recurring
audit? What are the factors to be considered in this regard? (04 marks)
(CA Inter -Spring 2003)
List the circumstances in which it may become necessary to revise the terms of audit engagement
for a recurring audit. (07 marks)
(CA Inter - Autumn 2011)
List the factors, for a recurring external audit, that may make it appropriate for an audit firm to
revise the terms of an audit engagement or remind the audited entity of existing terms. (03 marks)
(ICAEW - 2015 June)
4 By: Muhammad Asif, ACA
5. Auditing – Case Studies Chapter 8 Engagement Letter
CHAPTER EIGHT (CASE STUDIES)
ENGAGEMENT LETTER
AAPPXX 11:: CCAASSEE SSTTUUDDYY RREELLAATTIINNGG TTOO EENNGGAAGGEEMMEENNTT LLEETTTTEERR::
Structure of the Case:
In exam, you may be given a situation in which, you will be required to assess whether:
it is necessary to issue a fresh letter on recurring audit, considering facts of the case.
to accept changes in terms of audit engagement during audit.
Suggested Approach to Answer:
Remember to differentiate between change in terms of engagement on “recurring audit” and
“during the audit”.
Model Case Study From Examination Questions:
Case Study 1:
Guilin & Partners is a CGA firm that has audited ZFL for the past 5 years. During the past year, ZFL has grown to include
exports to Asia. The president and the controller both retired last year. The new management met with Guilin this year to
discuss this year’s audit and hope to reduce the audit fees. ZFL’s new management suggested that since the company had
received an unqualified audit opinion every year from Guilin, less audit work would be needed this year. They suggested
that there was no need for an engagement letter this year since Guilin’s staff were very familiar with the company. The
managing partner at Guilin, Tim, explained to the controller that there were new accounting principles being applied this
year because differential reporting rules no longer applied to the company. Tim also explained the audit process in more
detail to the controller and president, who then agreed that the audit fees requested by Guilin were reasonable.
Required
Explain why you would or would not require an engagement letter this year. Support your answer with three points.
(08 marks)
(CGA – Canada, External Auditing 1, September 2011)
Suggested Solution:
A fresh engagement letter should be sent to ZFL (even if it is our recurring audit) this year because:
1. Size of business has grown (now goods are also exported to Asia) which will bring new accounting and audit
implications to engagement.
2. There has been a significant change in senior management (president and controller have retired).
3. New management has some misunderstanding about objective and scope of audit (as it is expecting auditor to
reduce fee and work less).
4. Auditor’s understanding of terms of engagement is not sufficient, Client should also have sufficient
understanding of terms and conditions of engagement.
5. There has been major changes in requirements of Applicable Financial reporting framework.
Examiners’ Comments:
Question was answered satisfactorily by most students; however, some students simply discussed engagement letters in
general, without any reference to the situation given in the question. To succeed on the examination, it is necessary to identify
the concept, and then explain how it relates to the facts given in the question. If students simply state a general answer
without referring to the question facts, this only shows that they can recite a definition or memorize points, whereas a
professional accountant must be able to apply the knowledge in the course material to everyday facts.
1 By Muhammad Asif, ACA
6. Auditing – Case Studies Chapter 8 Engagement Letter
Case Study 2:
Your audit firm has been appointed to conduct a full scope audit of the financial statements covering a period of three
months of Clever Limited. Clever Limited needs the audit report for obtaining a bank loan. While verifying certain account
heads you identify certain problems for which you are not provided satisfactory replies by the client. At the same time
Clever Limited approaches you and asks you to change the scope of assignment from a full scope audit to a review
assignment. They give you the reason that they have misunderstood the scope of assignment earlier. What course of
action you would adopt in this situation?
(06 marks)
(CA Inter, Spring 2003)
Solution:
Whenever auditor is asked by client to revise terms of engagement during audit, auditor shall consider following factors
before accepting change:
1. Whether there is a reasonable justification for the change.
2. Legal or Contractual implications of the change.
As certain problems have been identified for which no satisfactory replies have been given by the client, it seems that this
change in engagement is due to incorrect or incomplete information and client wants to avoid qualified opinion by
changing terms of engagement. Hence, there is no reasonable justification to the change. So, we will not agree to change
the terms of engagement.
In this situation, auditor should continue to perform the audit engagement as per original terms of engagement. If
management of Clever Limited does not permit auditor to perform original engagement, it will be similar to scope
limitation and auditor shall:
Withdraw from engagement if possible and practicable.
Express disclaimer of opinion if withdrawal is not possible and practicable..
2 By Muhammad Asif, ACA