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CHAPTER 1 & 2 ICAEW CFAB ASSURANCE, statutory audit (assurance…

- - - - professional judgements
    - - every judgement cannot be included
    - - users not aware of the nature of the limitations
  - - - the practitioner (accountant
      - the intended users
      - the responsible party
    - - data (FS, business projections)
      - systems/processes (IC systems/ computer systems)
      - behaviour (social & environmental performance/ CG
    - - by which to judge
        
        UK Corporate GC/ Code of Practice
- - - - < £ 10.2 M
    - - < £ 5.1 M
    - - < 50
- - - - performing procedures
        
        review & completion
        
        reporting
    - - accountants are permitted to advertise for clients, within certain professional guidelines
    - - appointment considerations
        
        ensure professionally qualified to act
        
        ensure existing resources adequate
        
        obtain references
        
        communicate with present auditors
        
        whether there are reasons/ circumstances behind the change which the new auditors ought to know, also as a matter if courtesy
        
        make independent enquiries if directors not personally known
        
        consider available time, staff & technical expertise
        
        consider whether disqualified on legal or ethical grounds
        
        sources of information about new clients
        
        enquiries of other sources
        
        bankers, solicitors
        
        review of documents
        
        most recent annual accounts, listing particulars, credit rating
        
        previous accountants/ auditors
        
        invite to disclose fully all relevant information
        
        review of rules and standards
        
        consider specific laws/ standards that relate to industry
        
        money laundering regulations
        
        check identity
        
        client identification documents must be kept for a minimum of five years and until five years have lapsed since relationship with client ceased, keep full audit trail
        
        one-off transaction or a series of transactions > £ 15,000 will take place
    - - agreement of audit engagement terms must be in writing
        
        objective of the audit
        
        scope of the audit
        
        auditor's responsibility
        
        reporting framework
        
        management's responsibility to prepare FS, give auditor unrestricted access to records
        
        form of any reports if results of the engagement
- - - - reasonable (high) assurance engagement
        
        sufficient & appropriate
        
        positive wording
        
        "true and fair view"
        
        True
        
        information is factual and conforms with reality
        
        Fair
        
        information is free from discrimination and bias
      - limited assurance engagement
        
        sufficient & appropriate (low level)
        
        negative wording