Auditing Bits in Bytes session 1: Pre-Engagement Planning Activities

Auditing Bits in Bytes(TM) is a series of eight individual sessions that guides professionals through the complete audit process from “A to Z” - starting with Pre-Engagement Planning Activities, and going all the way through Wrap-up and Quality Control. The auditing profession is undergoing the most significant changes in modern history. Think about it. The Auditing Standards Board issued 14 new Statements on Auditing Standards all effective within two years of each other, the GAO revised Government Auditing Standards (twice!) in 2007, the PCAOB has six additional Auditing Standards related to audits of SEC “issuers” that directly influenced standards established for “non-issuers”, independence rules promulgated by all relevant standard setters have been clarified and enhanced, and Statements on Quality Control Standards for firms performing attestation services have also been revamped and strengthened. Whew! That is a lot! And to think that professionals complained about being confused before all these changes occurred!?! All professionals, both those that are new to performing financial statement audits and those with previous experience, can benefit from focused training that walks participants through the complete audit process from “A to Z”, providing practical tips and best practices for ensuring an effective and efficient financial statement audit in compliance with relevant professional and regulatory standards

Objectives:

• Session 1 of this eight-part series is designed to provide participants with a solid understanding of the important judgment calls that are made before the audit engagement even begins. While these decisions are made by the audit partner/manager, the impact of these conclusions has a direct impact on the entire engagement team. Professional judgment calls at this early stage influences the auditor’s assessed risk of material misstatement (i.e., “what could go wrong” in the client’s financial statements due to fraud or error). In addition, safeguards to protect and preserve threats to independent and objectivity are designed at this stage of the audit.

Major Topics:

• Engagement Acceptance/Continuance Decisions - Documentation requirements and relating key information to audit risk
• Independence & Objectivity - Identifying threats and implementing appropriate safeguards to mitigate or eliminate them to comply with current professional and regulatory standards
• Establishing an Understanding with the Client - What is important to communicate to clients and why, including scope of both non-attest and attest services and responsibilities of client management and accountants

Developed and offered by the Business Learning Institute.
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