The importance of audit planning

by | Nov 12, 2018 | Best Business Helps | 0 comments

All Premium Themes And WEBSITE Utilities Tools You Ever Need! Greatest 100% Free Bonuses With Any Purchase.

Greatest CYBER MONDAY SALES with Bonuses are offered to following date: Get Started For Free!
Purchase Any Product Today! Premium Bonuses More Than $10,997 Will Be Emailed To You To Keep Even Just For Trying It Out.
Click Here To See Greatest Bonuses

and Try Out Any Today!

Here’s the deal.. if you buy any product(s) Linked from this sitewww.Knowledge-Easy.com including Clickbank products, as long as not Google’s product ads, I am gonna Send ALL to you absolutely FREE!. That’s right, you WILL OWN ALL THE PRODUCTS, for Now, just follow these instructions:

1. Order the product(s) you want by click here and select the Top Product, Top Skill you like on this site ..

2. Automatically send you bonuses or simply send me your receipt to consultingadvantages@yahoo.com Or just Enter name and your email in the form at the Bonus Details.

3. I will validate your purchases. AND Send Themes, ALL 50 Greatests Plus The Ultimate Marketing Weapon & “WEBMASTER’S SURVIVAL KIT” to you include ALL Others are YOURS to keep even you return your purchase. No Questions Asked! High Classic Guaranteed for you! Download All Items At One Place.

That’s it !

*Also Unconditionally, NO RISK WHAT SO EVER with Any Product you buy this website,

60 Days Money Back Guarantee,

IF NOT HAPPY FOR ANY REASON, FUL REFUND, No Questions Asked!

Download Instantly in Hands Top Rated today!

Remember, you really have nothing to lose if the item you purchased is not right for you! Keep All The Bonuses.

Super Premium Bonuses Are Limited Time Only!

Day(s)

:

Hour(s)

:

Minute(s)

:

Second(s)

Get Paid To Use Facebook, Twitter and YouTube
Online Social Media Jobs Pay $25 - $50/Hour.
No Experience Required. Work At Home, $316/day!
View 1000s of companies hiring writers now!

Order Now!

MOST POPULAR

*****
Customer Support Chat Job: $25/hr
Chat On Twitter Job - $25/hr
Get Paid to chat with customers on
a business’s Twitter account.

Try Free Now!

Get Paid To Review Apps On Phone
Want to get paid $810 per week online?
Get Paid To Review Perfect Apps Weekly.

Order Now
!
Look For REAL Online Job?
Get Paid To Write Articles $200/day
View 1000s of companies hiring writers now!

Try-Out Free Now!

How To Develop Your Skill For Great Success And Happiness Including Become CPA? | Additional special tips From Admin

Skill level Development is without a doubt the number 1 critical and significant matter of obtaining valid good results in almost all procedures as one witnessed in all of our modern culture together with in Around the globe. Therefore privileged to focus on together with everyone in the next pertaining to what thriving Talent Expansion is; the best way or what means we deliver the results to achieve wishes and in the end one will certainly get the job done with what the person takes pleasure in to perform each individual daytime designed for a total lifespan. Is it so wonderful if you are effective to cultivate efficiently and find success in what you believed, in-line for, self-disciplined and performed really hard each working day and without doubt you turn out to be a CPA, Attorney, an master of a great manufacturer or possibly even a health care professional who will be able to greatly make contributions awesome aid and valuations to many others, who many, any culture and city without doubt esteemed and respected. I can's think I can support others to be finest high quality level exactly who will bring important choices and alleviation valuations to society and communities nowadays. How delighted are you if you grow to be one just like so with your personal name on the label? I get arrived at SUCCESS and rise above many the very hard parts which is passing the CPA qualifications to be CPA. Furthermore, we will also take care of what are the stumbling blocks, or other problems that can be on ones own manner and just how I have in person experienced all of them and should exhibit you the right way to address them. | From Admin and Read More at Cont'.

The importance of audit planning

What is the purpose of audit planning if the audit may not ultimately follow the carefully thought out plan? As may be inferred from Dwight D. Eisenhower’s words—”Plans are worthless, but planning is everything”—the value of audit planning is not derived solely from the resulting audit plan. Often overlooked, the real benefit of audit planning is gained from the process itself. In painstakingly documenting endless client details, auditors achieve more than just compliance with professional standards—they also develop more efficient engagements and help reduce professional liability risk.

Consider the importance of planning in this claim scenario:

The senior on a CPA firm’s largest audit engagement received a request from the client’s CFO for a copy of “any communications the firm has sent relating to internalcontrolrelated matters identified during the current– and prioryear audits and copies of internal control documentation completed by the firm.” Operating under the assumption that the client was finally going to address its many pesky control deficiencies, the senior happily sent an email with the requested documents.

A short time later the firm received notification of a lawsuit from the client. The complaint asserted that the audit firm had failed to detect an embezzlement scheme perpetrated by the accounts payable clerk. It further indicated that the firm’s failure to detect a breakdown in internal controls allowed for the payment of fictitious vendor invoices.

The firm’s legal counsel hired an expert to review each year’s engagement workpapers. One hopeful yet disturbing issue arose: The firm had informed the client of a significant deficiency in internal controls in its prioryear management letter. Had the deficiency been corrected, the embezzlement scheme likely would have been discovered. The disturbing point—the significant deficiency was not mentioned in currentyear engagement planning documentation, neither in risk assessment nor in the design of planned audit procedures. It appeared as though the prioryear documentation had simply been copied to the currentyear file with updated completion dates. No additional audit procedures addressed the issue, and the scheme continued for an additional six months beyond issuance of the currentyear audit report.

As exemplified above, use of the “same as last year” (SALY) mentality can be a major pitfall in audit planning. SALY disregards the advantages of the planning thought process, focusing instead on getting the job done quickly. Many planning pitfalls, including relying too heavily on checklists or compartmentalizing each step of the audit, result from trying to save time in the present without consideration of the rest of the engagement. Conversely, an engagement that is effectively planned could eliminate over– or undertesting, lead to more relevant documentation, and help reduce the likelihood of audit failure or a potential professional liability claim, saving time in the long run.

Audit planning is not a simple process. It involves consideration of client industry and regulatory factors, client operations and administration, availability and assignment of firm resources, engagement timing, and much more. Fortunately, the hard work of proper planning may not only enable more efficient audit execution, but it also provides auditors with important risk management techniques. Complying with all applicable professional standards when delivering services helps reduce professional liability risk. Consider the professional liability lessons that can be gleaned from these particular sections of the AICPA Statements on Auditing Standards:

Further, the resources should not be limited solely to the engagement team. Colleagues, peers, professional associations, technical standards, prioryear audits, and other engagements can all provide valuable insight. Utilizing all resources available to the engagement team may develop a more informed audit approach. For example, in the scenario above, the currentyear testing of accounts affected by the significant deficiency could have been assigned to a more experienced team member or subjected to additional review.

In addition to the professional liability risk management considerations that can be gleaned from the professional standards, two additional suggestions should be kept in mind.

Daniel Gartland is a risk control consultant at CNA.

Continental Casualty Co., one of the CNA insurance companies, is the underwriter of the AICPA Professional Liability Insurance Program. Aon Insurance Services, the National Program Administrator for the AICPA Professional Liability Program, is available at 800-221-3023 or visit cpai.com.

This article provides information, rather than advice or opinion. It is accurate to the best of the author’s knowledge as of the article date. This article should not be viewed as a substitute for recommendations of a retained professional. Such consultation is recommended in applying this material in any particular factual situations.

Examples are for illustrative purposes only and not intended to establish any standards of care, serve as legal advice, or acknowledge any given factual situation is covered under any CNA insurance policy. The relevant insurance policy provides actual terms, coverages, amounts, conditions, and exclusions for an insured. All products and services may not be available in all states and may be subject to change without notice.

Research & References of The importance of audit planning|A&C Accounting And Tax Services
Source

Send your purchase information or ask a question here!

11 + 5 =

Welcome To Knowledge-Easy Management Sound Tips and Thank You Very Much! Have a great day!

From Admin and Read More here. A note for you if you pursue CPA licence, KEEP PRACTICE with the MANY WONDER HELPS I showed you. Make sure to check your works after solving simulations. If a Cashflow statement or your consolidation statement is balanced, you know you pass right after sitting for the exams. I hope my information are great and helpful. Implement them. They worked for me. Hey.... turn gray hair to black also guys. Do not forget HEALTH? Skill level Advancement is the number 1 imperative and key issue of accomplishing valid good results in all of occupations as you came across in your population in addition to in Worldwide. Therefore happy to focus on with you in the next in regard to just what exactly prosperous Competence Enhancement is;. precisely how or what procedures we perform to accomplish desires and ultimately one will certainly do the job with what anyone loves to carry out each working day intended for a maximum lifetime. Is it so great if you are equipped to build up efficiently and locate achieving success in just what you dreamed, steered for, self-disciplined and did wonders hard every last daytime and without doubt you grown to be a CPA, Attorney, an holder of a great manufacturer or possibly even a physician who can easily very chip in amazing benefit and principles to many others, who many, any society and city absolutely adored and respected. I can's imagine I can enable others to be prime skilled level exactly who will make contributions major systems and remedy valuations to society and communities at this time. How satisfied are you if you turned into one like so with your individual name on the headline? I have got there at SUCCESS and rise above all of the tricky sections which is passing the CPA exams to be CPA. What is more, we will also include what are the dangers, or other sorts of factors that could possibly be on ones own strategy and the correct way I have professionally experienced all of them and is going to indicate you learn how to rise above them.

0 Comments

Submit a Comment

Business Best Sellers

 

Get Paid To Use Facebook, Twitter and YouTube
Online Social Media Jobs Pay $25 - $50/Hour.
No Experience Required. Work At Home, $316/day!
View 1000s of companies hiring writers now!
Order Now!

 

MOST POPULAR

*****

Customer Support Chat Job: $25/hr
Chat On Twitter Job - $25/hr
Get Paid to chat with customers on
a business’s Twitter account.
Try Free Now!

 

Get Paid To Review Apps On Phone
Want to get paid $810 per week online?
Get Paid To Review Perfect Apps Weekly.
Order Now!

Look For REAL Online Job?
Get Paid To Write Articles $200/day
View 1000s of companies hiring writers now!
Try-Out Free Now!

 

 
error: Content is protected !!