Elements and Performance Criteria
- Assess options
- Statutory requirements are identified from assessment of terms of reference and client objectives and obligations
- Client activities and procedures are reviewed and analysed to establish familiarity with systems and guide the selection of appropriate audit methodologies
- Financial audit methodologies are developed to identify significant features of the audit and establish criteria for conducting the audit in accordance with professional auditing standards
- Identify information sources
- Determine audit strategies
- Client financial business characteristics are established from analysis of the general economy, the industry and the client's provided information
- Client's inherent financial risk is assessed through value chain risk analysis
- Internal control procedures for financial transactions are identified through discussion with the client and established professional standards
- Audit methodologies use established sampling and selection techniques in a manner consistent with the internal control procedures and substantive testing
- Schedule resources and timelines and monitor progress
- Timeframes are established and personnel allocated to functions and tasks based on audit lines of inquiry
- Resource use is reviewed regularly and intermittent reports developed and monitored with resource allocation and timeframes adjusted through discussion and agreement with the client and in accordance with professional accounting standards
- Review data and verify statements
- Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives
- Evidence on financial systems and controls under review is obtained and evaluated using established testing procedures and in accordance with criteria identified in audit methodology
- Management assertions are tested to achieve audit objectives
- Sufficient appropriate audit evidence is gathered as a basis for an expert opinion
- Financial statements are verified as materially misstated or correct
- Determine reporting formats
- Financial operational functions, services and systems are identified and documented in accordance with standard formats
- Format is consistent with documentation requirements of the auditor and professional auditing standards
- Financial audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format