Course ID: ABB1

Auditing Bits in Bytes – Session 1: Pre-Engagement Activities – What to Consider Before the Audit Even Starts

Auditing Bits in Bytes™ – A Practical Break-Down of “Real World” Best Practices Applied in Highly Successful Audits is a series of eight individual sessions that guide professionals through the complete audit process from “A to Z” – starting with Pre-Engagement Planning Activities, and going all the way through Wrap-up and Quality Control.

Attempting to perform an effective and efficient audit can be intimidating and confusing, for new and experienced auditors alike. This series will provide valuable tips and techniques from an experienced auditor that are needed to successfully design and perform financial statement audits in “real-life” circumstances. Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement.

This 2-hour session is designed to provide participants with a solid understanding of the important judgment calls that are made before the audit engagement even begins. While these decisions are made by the audit partner/manager, the impact of these conclusions has a direct impact on the entire engagement team. Professional judgment calls at this early stage influence the auditor’s assessed risk of material misstatement (i.e., “what could go wrong” in the client’s financial statements due to fraud or error). In addition, safeguards to protect and preserve threats to independence and objectivity are designed at this stage of the audit.


LEARNING OBJECTIVES
  • Describe the important activities that are performed before the audit engagement even begins, such as gathering information about engagement risk
  • Explain the important considerations in making engagement acceptance and continuance decisions, including evaluating independence
  • Define what should be communicated when establishing and understanding with the client, including when nonattest services are provided for an attest client
  • Recognize the professional judgments made early in the audit that establish the foundation for a high quality and profitable engagement, including initial and group financial statement audit engagements

MAJOR TOPICS
  • Engagement Acceptance/Continuance Decisions – Documentation requirements and key engagement risk considerations
    Independence & Objectivity – Identifying threats and implementing appropriate safeguards to mitigate or eliminate them to comply with current professional and regulatory standards
  • Establishing an Understanding with the Client – What is important to communicate to clients and why, including scope of both non-attest and attest services and responsibilities of client management and accountants
  • Initial Audits – Special considerations of a successor auditor
  • Group Audits – Clarifying pre-engagement roles and responsibilities of group and component auditors in audits of group financial statements
  • Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement

DESIGNED FOR
Public accountants interested in increasing the quality and profitability of audit engagements

FIELD OF STUDY
Auditing

PREREQUISITES
None

COURSE PRODUCER
Business Learning Institute

CPE CREDITS
2.0

LEVEL
Basic

This course is available for your group as:

Group Live On-Demand
 

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