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Wiley Practitioner's Guide to GAAS 2018, 2nd Edition
book

Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

by Joanne M. Flood
April 2018
Beginner to intermediate content levelBeginner to intermediate
880 pages
28h 54m
English
Wiley
Content preview from Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

AU-C 300 Planning an Audit

AU-C Original Pronouncements

Sources Statements on Accounting Standards (SASs) 122 and 128.

Objective of AU-C Section 300

AU-C Section 300.04 states that:

…the objective of the auditor is to plan the audit so that it will be performed in an effective manner.

Requirements

Preliminary Engagement Activities

It's important for the engagement partner and other key members of the engagement team to be involved in planning the audit. (AU-C 300.05) The auditor should perform the following activities at the beginning of the current audit engagement:

  • Perform procedures regarding the continuance of the client relationship and the specific audit engagement. (AU-C 220)
  • Evaluate the auditor's compliance with ethical requirements, including independence. (AU-C 220)
  • Establish the terms of the engagement. (AU-C 210)

    (AU-C 300.06)

The purpose of performing these preliminary engagement activities is to consider any events or circumstances that either may adversely affect the auditor's ability to plan and perform the audit or may pose an unacceptable level of risk to the auditor.

The Overall Audit Strategy

The auditor should establish and document the overall audit strategy for the audit. (AU-C 300.07)

The overall audit strategy involves the determination of:

  • The characteristics of the audit that define its scope
  • The reporting objectives of the engagement related to the timing of the audit and the required communications
  • Important factors that determine ...
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Publisher Resources

ISBN: 9781119396482Purchase book