Please enable JavaScript.
Coggle requires JavaScript to display documents.
Audit Review (Engagement Letter (ORC (are they compliant w laws &…
Audit Review
Engagement Letter
ORC
(are they compliant w laws & regs)
FACSIMILE
- Fees, Audit Report, Confirm engagement, Scope & Objective (let them know of any
specialists
), Internal Control,
Mgmt Resp
(DIM & FS), Irregularities (Fraud), Illegal Acts, Errors
Nature & Scope
of audit
Not required - but need some form of letter to take place
Audit Plan
Perform analytical Procedures
Document audit procedures to be performed
Preliminary assessment of materiality
Consideration of entity's internal control structure
Quality Control Procedures
Ensures
ENGAGEMENT PERFORMANCE
Limits risk of being associated with client that
LACKS INTEGRITY
Ensures
INDEPENDENCE
for Attestation Services (audit, review, & agreed upon procedures)
AICPA Allowed Bookkeeping Services
Do not have to disclose in audit report if allowed
We audit payroll company that is outsourced by school
- if school's auditor inquires we should tell them the
Nature & Scope
of procedures we performed
The other auditor wants to act with
DUE PROFESSIONAL CARE
, which is why they want to examine our work
Consulting with experts when needed
Proper audit documentation & review
review outsourced payroll report (supports client's internal control/CR)
Management Rep Letter
Acknowledges
DIM
and
Fair Presentation of FS
Dated same date as audit report (same or after sufficient audit evidence is obtained)
RIIO
assesses
CONTROL RISK
(risk that controls are not implemented to detect or prevent material misstatements)
SOX
established the
PCAOB
- that mandated
Integrated Audits
(have to eval IC for all public/issuer companies)
Comparative financials 1yr audited 1yr unaudited
Separate paragraph
to state responsibilities for audited financials -
State the type of opinion expressed for audited financials in that paragraph