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
- 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
- Knowledge of the client is established from the economy, the industry and the client's business
- Client's inherent risk is assessed through value chain risk analysis
- Internal control procedures 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
- Resource allocations and timeframes are adjusted through discussion and agreement with the client and in accordance with professional accounting standards
- Resourcing needs and the allocation of personnel, time and equipment are assessed and identified within the scope of the audit methodology
- Review data
- Significant strengths and weaknesses are identified in the controls and ranked in accordance to audit objectives
- Evidence on 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
- Verify statements
- Determine reporting formats
- 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
- Audit opinions, including recommendations, are formulated and provided to the client in an established and acceptable format