8/8/2019 Audit M2

1/4

M2

1/4

M2 General audit principles and auditor responsibility

A Page No. SAT

Australian auditing standards (ASA) 2.4

ISA ASA 2.6

Audit risk components Q2.2

Audit Pre-condition 2.10 Audit independence 2.13

1.Australian prospective 2.13-14

2.US prospective (SOX404): audit client 2.16

Auditor unable to continue engagement 2.38

ISA230 audit documentation

Audit documentation purpose 2.24

ASA documentation 2.25

Audit objective 2.26

Audit documentation: 1)timely basis 2)proof f evidence 2.23

audit procedure/evidence errorfraud

2.38 Q2.8

B

C

Clarity standards 2.4

Control risk IC IC 2.7 Q2.2

control risk factors 2.8

Change terms of engagement 2.11

Conflict of interest situation 2.14

Communication of audit team 2.29/7.12 M7case4

Communication of audit matters with those charged with governance: 4

2.39

Communication to management fraud 7.26

Continuance of client relationship 2.19/6.9

1. continuing engagementauditor

?

M6Case Part1 (2)

2. existing client, Eng Lr? M6Case Part1 (3)

Communication of deficiency of internal control to Management: 4 2.40

Communication to regulatory/enforcement authorities

/

7.27 M7case15

D

Detection risk audit procedure 2.8 Q2.2

Documentation of specific items 2.24

Documentation of significant matters 2.24

Discussion among engagement team: team 2.29/7.12 M7case4

1. fraud 4 2.29

2.team discussion 4 step 2.29

3. fraud Q2.7

4. audit team M7Case4(2)

8/8/2019 Audit M2

2/4

M2

2/4

5.audit teamplanning M7Case4(3)

E

Engagement letter 2.10

Error 2.26

Evaluation of audit evidence 2.38

(Audit engagement) Partners responsibility includes:6 P section 2.18

F

Fin Reporting Council (FRC) responsibility on auditor independence 3 2.14

Fraud/ 2.26 /7.4 Q7.1/Q7.2

Fraudulent financial reporting: 6 2.27

Fraud risk factors: fraud 2.30

Fraud Triangle fraud 2.31 M2Case2.6-2.9

M7Case1

1.Fraud Incentive , 2.31

2.Fraud Opportunity, 2.31

3.Ability to rationalised the fraud action 2.31

fraud detect and prevent 7.9 M7Case2G

H

High level audit review by EIC Q2.5

I

International standards on auditing (ISA) 2.4

ISA ASA 2.6

Inherent risk IC 2.7 Q2.2

Inherent risk factors 2.8

Independence for audit of fin statement 2.13

auditor independence of Corporation Act section324CA

2.13

Inquiries: audit procedure 2.30

Indicators of fraud or Fraud Triangle : 3 fraud 2.31

1.Incentive or pressures of fraud 4 2.31

2. fraud opportunity 4 2.31

independence issues Q2.10

L

M

Modify audit file 2.25

Misappropriation of assets

2.27

Example of misappropriation assets 2.28

N

Non-audit service auditor independence threats Q2.4

O

Overall objective of auditor 2 2.5

P

Professional judgement and scepticism() 2.6

Professional judgement auditor made to assess risk Q2.9

8/8/2019 Audit M2

3/4

M2

3/4

Precondition of audit 2.10

(Audit engagement) Partners responsibility includes: 2.18

1.engagement team member compliance with ethical requirements 2.18

2.acceptance and continuance of client relationship and specific

audit engagment

2.19

3.assigement of engagement teams 2.19

4.engagement performance: 1) partner 2) experienced teammember 3) Partner consultation 4)quality control review (2nd

partner review)

2.19-2.21

5.consideration of the results of the firm monitoring process 2.21

6.review of audit working papers: 1) work paper review by FIC and

Audit Manager 2) partner work 3)partner review

2.22

Professional ethics 2.18

Professional scepticism 2.28 Q2.6

Q

Quality control for audits 2.17 audit engagement quality 2.17

R

Reasonable assurance ( audit audit) 2.5 Q2.2

Renew engagement letter each year 2.11

Detailed audit review by FIC 2.22

Risk assessment procedures 31)specific

2staff allocation; 3)Time allocation

2.30 M7Case6

Revenue fraud techniques 2.37

Risk in uncertain economic environment fraud risk 7.13

S

T

Terms of audit engagement 2.10

1. 2.10

2.change the terms of EL 2.10 Q2.3

U

US legislation of auditor independence 2.16

1.SOX audit client service 9 2.16

2. SOX audit client auditor5 2.16

Unable to continuous the engagement 2.38/7.26

V

W

8/8/2019 Audit M2

4/4

M2

4/4

Formulas