Scribd
Upload
52 views9 pages

Chap 04 - Audit Process - Accepting An Engagement

The document outlines the key steps in a financial statement audit process: 1) Accepting an engagement involves considering the auditor's competence, independence, ability to serve the client, and integrity of management as well as drafting an engagement letter. 2) Audit planning includes considering internal controls. 3) The audit involves performing procedures like inquiry, observation, inspection, confirmation, analytical procedures, and computation to obtain sufficient and appropriate audit evidence to support the audit opinion.

Uploaded by

amir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
52 views9 pages

Chap 04 - Audit Process - Accepting An Engagement

The document outlines the key steps in a financial statement audit process: 1) Accepting an engagement involves considering the auditor's competence, independence, ability to serve the client, and integrity of management as well as drafting an engagement letter. 2) Audit planning includes considering internal controls. 3) The audit involves performing procedures like inquiry, observation, inspection, confirmation, analytical procedures, and computation to obtain sufficient and appropriate audit evidence to support the audit opinion.

Uploaded by

amir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 9

Audit Process-Accepting An

Engagement
General Approach in FS Audit

Audit Audit Audit


Assertions
Procedures Evidence Opinion
Assertions

Transactions Account Presentation


and Events Balances & Disclosure

•O •C •O
•C •E •C
•A •R •C
•C •V •A
•C
Audit Evidence

Sufficient Appropriate

Quantity Quality
Audit Procedures

Inspection
Observation Computation

Analytical
Inquiry Confirmation
Procedure
Audit Process

Accepting Considering
Audit
An Internal
Planning
Engagement Control

Substantive Completing Issuing a


Test the Audit Report
Accepting an Engagement

Competence

Independence

Ability to serve client

Integrity of
Management
Engagement Letter

 Objective of the audit


 Management’s responsibility
 Scope of the audit
 Form or Report needed by the auditor
 Limitation of the audit
 Unrestricted access to any records in connection with the audit
May include also:
 Billing arrangements
 Expectation of receiving management’s representation letter
 Arrangement as to the conduct of audit
 Request for clients confirmation
Thank you

You might also like