AUDIT PLANNING AND DOCUMENTATION

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CHAPTER 7

• AUDIT PLANNING AND DOCUMENTATION

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PLANNING

• PREPLAN
• CLIENT ACCEPTANCE OR CONTINUATION
• INVESTIGATION
• REASONS FOR AUDIT
• ENGAGEMENT LETTER
• SELECT STAFF

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• OBTAIN BACKGROUND INFORMATION
• KNOWLEDGE OF CLIENT INDUSTRY
• TOUR CLIENT FACILITIES
• IDENTIFY RELATED PARTIES
• NEED FOR SPECIALISTS
• CLIENT LEGAL OBLIGATIONS
• CHARTER AND BYLAWS
• MINUTES OF MEETINGS
• CONTARCTS
• PRELIMINARY ANALYTICAL REVIEW

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WORKING PAPERS

• PURPOSES OF WORKING PAPERS
• PLANNING AUDIT
• RECORD EVIDENCE GATHERED
• BASIS FOR AUDIT REPORT
• BASIS FOR REVIEW
• CONTENT AND ORGANIZATION
• PERMANENT FILES
• CURRENT FILES

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• WORKING TRIAL BALANCE
• GROUPED TRIAL BALANCE
• LEAD SCHEDULES
• FOR EACH MAJOR CATEGORY, LISTING OF ALL ACCOUNTS
  OF THAT TYPE
• ADJUSTING AND RECLASSIFICATION ENTRIES
• SUPPORTING SCHEDULES
• ANALYSIS
• TRIAL BALANCE OR LIST
• RECONCILIATION
• TEST OF REASONABLENESS
• SUMMARY OF PROCEDURES
• SUPPORTING DOCUMENTS
• OUTSIDE DOCUMENTATION

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• PREPARATION OF WORKING PAPERS
• HEADING
• INDEXING AND CROSS-REFERENCING
• INDICATE AUDIT WORK PERFORMED
• TICK MARKS
• OBJECTIVE OF PREPARING WORK PAPER
• CONCLUSIONS
• OWNERSHIP OF WORK PAPERS
• CONFIDENTIALITY