Auditing Bits in Bytes™ Session 1: Pre-Engagement Planning Activities
Description
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.
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
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
Provider
Business Learning Institute
Course Level
Basic
Professional Area of Focus
Accounting & Auditing
CPE Field of Study
Auditing
2.0
Who Should Attend
Anyone who is new to auditing or desires a refresher in how to perform effective and efficient financial statement audits for non-issuers in accordance with professional and regulatory standards.
