Understand the role of professional skepticism in Chapter 5 - Audit Responsibilities and Objectives Session 2 cont’d fraud risk assessment and the conduct of the audit (Omit Section 2 Preplan Audit (covered in Week – Understand the importance of auditor independence 3) and understand how to conduct an independence Chapter 3 Professional Relationships, – threat analysis (Independence Section, p. 58-63) Understand how transactions are related within key Chapter 20 -Auditor Reporting, p. 596-599 financial statements cycles. Apply the cycle approach to planning the financial statement audit CPA Handbook: Understand the role of entity-level controls in cycles CAS 210 and assessing risk in the audit CAS 240 Understand and apply management assertions to CAS 500 develop audit objectives for classes of transaction- balances, and presentation and disclosure. Describe the audit process. Assignment and Class Work Session 3 Preplanning and Developing Client Risk Profile Textbook 6-25 Discussion/practice questions: Thursday, June 4 Learning Objectives: In-class group exercise: Epoch Jeans (parts a and b) Understand the purpose of preplanning the audit and the various steps to be performed Individual Hand In- Assignment #1 due Conduct an Independence Threat Analysis (See Course Website) Explain the importance of an adequate audit planning process. REQUIRED READING: Develop a client risk profile to aid in planning the Chapter 5 Section 2 - Preplan Audit (p. 108-112) – financial statement audit Chapter 6 - Client risk profile (Omit Section 3 and industry to determine Assess client’s business Nature of Audit Working Papers) risk of material misstatement at the financial Chapter 8 Purpose and timing of analytical – statement and account level procedures (p. 232-239) and Appendix 8A Understand the types of evidence that the auditor
Session 2 cont’d Understand the role of professional skepticism in fraud risk assessment and the conduct of the audit Understand the importance of auditor independence and understand how to conduct an independence threat analysis Understand how transactions are related within key financial statements cycles. Apply the cycle approach to planning the financial statement audit Understand the role of entity-level controls in cycles and assessing risk in the audit Understand and apply management assertions to develop audit objectives for classes of transaction- balances, and presentation and disclosure. Describe the audit process. Chapter 5 - Audit Responsibilities and Objectives (Omit Section 2 – Preplan Audit (covered in Week 3) Chapter 3 – Professional Relationships, (Independence Section, p. 58-63) Chapter 20 -Auditor Reporting, p. 596-599 CPA Handbook: CAS 210 CAS 240 CAS 500 Session 3 Thursday, June 4 Preplanning and Developing Client Risk Profile Learning Objectives: Understand the purpose of preplanning the audit and the various steps to be performed Conduct an Independence Threat Analysis Explain the importance of an adequate audit planning process. Develop a client risk profile to aid in planning the financial statement audit Assess client’s business and industry to determine risk of material misstatement at the financial statement and account level Understand the types of evidence that the auditor Assignment and Class Work Discussion/practice questions: Textbook 6-25 In-class group exercise: Epoch Jeans (parts a and b) Individual Hand In- Assignment #1 due (See Course Website) REQUIRED READING: Chapter 5 – Section 2 - Preplan Audit (p. 108-112) Chapter 6 - Client risk profile (Omit Section 3 Nature of Audit Working Papers) Chapter 8 – Purpose and timing of analytical procedures (p. 232-239) and Appendix 8A