Client Evaluation
and Planning the
Audit
Objectives
4
Acceptance and
continuance of client
relationships
Steps in accepting an audit
engagement
Client evaluation
10
Engagement letter
Responsibilities of management
12
Steps in the planning
process
13
Steps in the planning
process
Understanding of the entity
and
its environment
15
Industry conditions
16
Regulatory issues
17
Economic factors
18
The nature of the entity
Business operations
The auditor needs to gain knowledge of issues such as
business operations
19
Investments and financing
20
Financial reporting and
accounting practices
22
The entitys objectives,
strategies and related
business risks
Industry trends
24
Performing analytical
procedures
industry averages
25
Consideration of fraud in
planning
ASA 240
26
Fraud Triangle
Incentives/pressures Attitudes/rationalisation
27
Fraud Triangle
Misappropriation of assets
28
Auditing for fraud
Enquiries of management
Permanent file
Current file
Audit program