Assurance Year 1 - Day 1

Audit Basics

100

To enhance the degree of confidence of the intended users of the financial statements

Audit Purpose

200

Risk that an inappropriate opinion is issued when the financial statements are not free from material misstatement.

Audit risk

300

Inherent risk + Control risk = ??

Risk of Material Misstatement / RoMM

400

The seven (7) PwC Assertions are?

Accuracy, Completeness, Cut-Off, Existence/Occurrence, Presentation & Disclosure, Rights & Obligation and Valuation

1000

Explain any of three assertions?

Open ended

Materiality/Audit Risk

100

The susceptibility of an account balance or class of transaction or disclosure to misstatement before consideration of any related controls

Inherent Risk

200

Risk that an inappropriate opinion is issued when the financial statements are not free from material misstatements

Audit Risk

300

Used to determine which identified misstatements will be posted to the SUM for assessing their impact on the financial statements

de minimus SUM posting level

400

We have obtained sufficient and appropriate audit evidence to reduce audit risk to an acceptably low level

Reasonable Assurance

1000

The maximum tolerable amount of quantitative error or misstatement before the financial statements is considered as materially misstated or misleading to the intended users

Give PwC Audit Guide reference

Overall Materiality 

PwC Audit 3302.2

Audit Documentation

100

If it's not documented then..

it's not done

200

Audit evidence must be.....

sufficient and appropriate

300

EGA

Evidence gathering activities

400

Three sources of guidance?

1. Team

2. PwC Audit Guide/Assurance Assist

3. PwC Viewpoint

1000

Per ISA 230.7 timely preparation of audit documentation hels to do?

1. Enhance audit quality and

2. Facilitate the effective review and evaluation of the audit evidence obtained and conclusions reached before the auditor's report is finalised.