Auditing Financial Statements

Learn how a financial statement audit is carried out from start to finish.

5 daysIntermediate10 modules

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Overview

About this course

Learn how a financial statement audit is carried out from start to finish. Over five days you will plan an engagement, set materiality, assess risk, gather and evaluate evidence, apply sampling and build working papers that stand up to review.

The course closes with completion work and the auditor's report, including modified opinions. Practical case exercises run throughout, so you leave able to contribute to real audit files with confidence.

What you'll learn

Explain the purpose of an external audit and the auditor's responsibilities
Plan an audit using materiality and an understanding of the entity
Assess the risks of material misstatement at financial statement and assertion level
Design substantive procedures and tests of controls that respond to assessed risks
Select and evaluate audit samples using statistical and non-statistical methods
Prepare clear, complete working papers that support audit conclusions
Form an audit opinion and draft the auditor's report, including modified opinions

Curriculum

10 modules

Purpose and value of an external audit
Auditing standards and the auditor's responsibilities
Professional ethics, independence and scepticism
Engagement acceptance and terms of engagement

The entity, its environment and its industry
Financial reporting framework and accounting policies
Analytical procedures at the planning stage
Identifying related parties and going concern indicators

Overall and performance materiality
Components of audit risk
Risks of material misstatement and financial statement assertions
Fraud risk and management override

The overall audit strategy
The detailed audit plan
Team briefing and allocation of work
Using the work of experts and internal audit

Components of internal control
Documenting systems with narratives and flowcharts
Walkthroughs and control evaluation
Designing and performing tests of controls

Sufficient and appropriate evidence
Inspection, observation, enquiry and confirmation
Recalculation, reperformance and analytical procedures
Evaluating reliability of evidence

Statistical and non-statistical sampling
Determining sample size
Selection methods
Projecting and evaluating misstatements

Revenue and receivables
Inventory and cost of sales
Property, plant and equipment
Payables, accruals and provisions
Cash, bank and borrowings

Purpose and content of working papers
Structure, referencing and cross-referencing
Review and supervision
Retention and confidentiality of files

Subsequent events and going concern review
Written representations
Evaluating misstatements identified
The auditor's report and key audit matters
Modified opinions and emphasis of matter

Who it's for

Junior and semi-senior auditors, accountants moving into audit and finance staff who work with external auditors.

Before you start

Working knowledge of financial accounting and financial statements

Diplomas

Part of these Alalamia diplomas

Alalamia Diploma in Financial Management and Business Accounting

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