Professional Documents
Culture Documents
Unit 1
Explain the importance of auditing and the role of the external auditor
Explain how information risk arises and how auditors can reduce information risk
Describe the applicable financial reporting framework as being the criteria auditors
use to render an opinion on the financial statements.
Identify and apply Generally Accepted Auditing Standards (GAAS), (Elements of the
Relevant Ethical Requirements - CAS 220/CSQC 1) and the Canadian Auditing
Standards
Identify the Other Canadian Auditing Standards and discuss other types of
engagements.
Identify and apply the Canadian Quality Control Standards (elements of CSQC 1, CAS
220) to a practical question
Compare and contrast the scope and opinion paragraphs in a standard unmodified
audit report.
For a given set of accounting facts and audit circumstances, analyze qualified,
adverse and disclaimer audit reports - determine how the standard audit report
would change for a scope limitation and a GAAP departure (including change in
wording in the opinion paragraph).
Explain why auditors have standards for reporting on the application of accounting
principles.
Unit 2
Describe the activities auditors undertake before starting a financial statement audit
engagement.
Explain why auditors need to understand the auditee organizations business, its
environment, and risks at the start of a financial statement audit.
Explain why auditors need to communicate with the predecessor auditor for new
engagements.
Define engagement letters and understand why engagement letters are prepared,
including the various components of an engagement letter.
Explain the purpose of preliminary analytical procedures and business risk analysis in
the audit planning process.
Explain the materiality concept, the materiality levels used for planning the audit,
and how these amounts are determined for purposes of recommending planning and
performance materiality.
Explain how the preliminary planning activities are integrated in the overall audit
strategy.
Describe the conceptual audit risk model and its components, and explain its
usefulness and limitations in conducting the audit.
Explain how auditors assess the auditees business risk through strategic analysis
and business process analysis.
Illustrate how business risk analysis is used in a preliminary assessment of the risk
that fraud or error has led to material misstatement at the overall financial statement
level.
Define fraud.
Discuss the fraud risk factors also referred to as the fraud triangle.
Define seven internal control objectives, relating them to the management assertions
in financial account balances.
Outline the auditors responsibility when internal control evaluation work detects or
indicates a high risk of fraudulent misstatement.
Unit 3
Identify the procedures and sources of information auditors can use to obtain
evidence for
Describe the content and purpose of the audit plan as well as the specific audit
programs and detailed procedures it contains
Develop a simple audit program for a test of a clients internal control procedures.
Develop a simple audit program for an account balance, considering the influence of
risk and tolerable misstatement.
Describe the balance sheet account groups that the major revenue and expense
accounts are associated with, as well as the substantive analytical procedures applied
to audit revenue and expenses.
Explain why written management representations are obtained, and what items are
generally included in the representation letter, including identification of related
parties Explain the purpose and content of lawyers letters (letters of enquiry) and
how they are used at the completion stage of an audit to identify any contingencies.
Given a set of facts and circumstances, classify a subsequent event by type and
proper treatment in the financial statements, and outline the implications of the
timing of discovery of the event for the auditors report.
Explain the final evaluation and conclusion stage of the audit: adjustments resulting
from the audit, evaluation of evidence and misstatements to form the audit opinion,
and reviews of working paper files.
Unit 5
Discuss the other types of assurance and non assurance engagements and the
auditor's involvement in each of these engagements
Understand the auditors requirements and ethical requirements to accept other types
of assurance and non assurance engagements
Discuss the nature of the reports for other types of assurance and non assurance
engagements