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Audit Process - Coggle Diagram
Audit Process
Concluding & Reporting
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Step 5: Post Reporting Period Events (Link IAS10)
-From Rep. Date to Issue OR from issue to after issue auditor becomes aware of facts that affect FS
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Mgmt ≠ Change FS
•AR issued; Don't release to 3rd parties
•AR ≠ Issued; Qualified
•AR released; Steps to limit reliance
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Step 6: Concluding & Reporting
-ISA700
-Audit opinion;
•Nature of matter: uncertainty due to circumstance or client
•Material/Material & Pervasive
•Audit Opinion
-Unqualified
-Emphasis
-Adverse
-Qualified
-Disclaimer
Step 2: Evaluation of Misstatements
-Determine final materiality on actual results (Cannot increase planning materiality)
-Audit difference between evidence & FS
-Undermateriality= quantity not material, in isolation-don't adjust
-Overmateriality= Quantity material, in isolation adjust
Difference=Material
•Adjusted, unqualified
•Not Adjusted, Modified
Difference≠Material
•Cumulative & Adjusted, unqualified
•Cumulative & ≠ Adjusted, modified
•Individual & Adjusted, Unqualified
• Individual &≠ adjusted, modified
Step 1: Sufficiency & Appropriateness of Evidence
-Sufficient (Quantity): Take note of risk & quality
-Appropriate (Quality): Take note of nature & source for reliability
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Planning
Overall Planning
-Understand Entity & Environment (RAPS)
-Understand internal controls of client (TOCs)
-Determine ROMM @ FS Level
-Planning Materiality
-Audit Approach;
•Nature (necessary, possible. desirable)
•Timing
•Extent
-Other Considerations (staff, etc.)
Detailed Planning
-Identify & Assess risk at Assertion Level
-Identify controls of audit significance to address risks
-Set Audit Approach for specific classes of transactions, account balances & disclosures
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