Audit Update (Autumn)

Objectives

To provide auditors with the latest revisions to ISAs and guidance from regulators for the upcoming audit season.

Key topics

AUDIT REGULATIONS CONSULTATION

• Key proposed change
• Analytical procedures at the planning stage
• Step 1: Form an expectation
• Step 2: Identify variances
• Step 3: Investigate those variances
• Step 4: Respond to the results
• Types of analytical procedure commonly used at the planning stage
• Analytical procedures used as audit evidence
• Assertions under scrutiny
• Reliability of the data
• Degree of precision possible
• Amount of variation which is acceptable
• Common problems with analytical review identified during file reviews
• Analytical procedures at the completion phase of the audit
• ISA (UK) 600 (REVISED)
• Definition of ‘component’
• Proactive risk-based approach
• Planning the group audit
• Materiality considerations
• Relying on the work of component auditors
• Restrictions on accessing component auditor working papers
• Summary of major changes and practical points to consider
• AUDITORS RESPONSIBLITY RELATING TO OTHER INFORMATION IN THE ANNUAL REPORT
• Auditor’s responsibilities
• The applicable legal requirements – s414c
• The applicable legal requirements – in practice for unquoted companies
• Case study
• Your solution
• Placement of the Other Information section in the auditor’s report
  FRC PUBLISHES TIER 1 AUDIT FIRM INSPECTION RESULTS
• FRC findings
• ISQM (UK) 1
• BDO
• Firm’s system of quality management
• FRC actions
• Key findings
• Deloitte
• Key findings
• EY LLP
• Key findings
• Forvis Mazars LLP (formerly Mazars LLP)
• Firm’s system of quality management
• FRC actions
• Key findings KPMG
• Key findings PwC
• Key findings
• General findings
• ICAEW AUDIT MONITORING REPORT
• Key points raised
• Group audits
• Stock
• Long-term contracts
• Property valuations
• Business valuations
• Revenue
  OTHER ASSURANCE ENGAGEMENTS
• Elements of an assurance engagement
• Reasonable assurance engagements
• Limited assurance engagement
• Summary
• Guidance for assurance engagements other than audits
• Review engagements
  GRANT CLAIM REPORTS
• Practitioner’s responsibilities
• Duty of care
• Tripartite or multipartite engagements
• Standardised engagement terms
• Type of engagement
• Scope of work
• Format of the report
• Confidentiality
• Data protection
• Fraud and illegal acts
  FRC THEMATIC REVIEW ON SAMPLING
• High-level observations
• Objective of audit sampling
• Sample size calculators
• Monetary unit sampling (MUS) tools
• Sampling in tests of details
• Key items selection and selecting specific items
• Haphazard sampling
• Controls testing and sampling
• Sampling and ISQM (UK) 1
  ATTENDANCE AT THE STOCK TAKE
• Objective of ISA (UK) 501
• Prior to the inventory count
• During the inventory count
• After the inventory count
• Inventory held at third parties
• New audit engagements
• Cut-off testing
• Perpetual inventory systems

Who should attend

This webinar is aimed at all levels of staff involved in auditing financial statements.