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Audit process - Coggle Diagram

- - - - Obtain draft FS
      - Understand the entity & its environment
      - Set materiality level
      - Analytical review
      - Reliance on experts & internal audit
      - Obtain info about the entity
    - - Why?
        
        So as to perform an effective audit
        
        To assess if we can rely on the Internal Control System
      - How?
        
        Make inquiries
        
        Observation
        
        Inspection
      - Document the accounting and internal control system
        
        Why?
        
        As a reference for next year’s audit
        
        As evidence of audit planning
        
        How?
        
        Narrative notes
        
        Flow charts
        
        Questionnaires
        
        Carry out test to confirm the operation of accounting and internal control system
        
        Walk through tests
        
        Send interim letter to management and those charged with governance
        
        Evaluation of the internal controls: Does the auditor intends to rely on the internal controls of the entity?
        
        Yes
        
        Perform compliance tests
        
        Outcome satisfactory?
        
        2 more items...
        
        No