QQ登录
微博登录
微信登录
Section of document Purpose Example from B-Star
Understanding the entity’s environment Provides details of the industry area that Size of the theme park sector and
the company is in along with specific expected growth over the next few years.
information about the activities and
strategies of the individual client.
Understand the accounting and internal Details of accounting policies of the Accounting policy for sales – sales are
control systems client and previous assessments of stated net of sales taxes.
internal control systems indicating the
Reliance on control systems in B-Star
expected extent of reliance on those
may be limited due to lack of
systems.
documentation of controls.
Risk and materiality The assessment of risk for the client and Materiality for sales to be 5% of turnover.
the risk of fraud and error and the
B-Star receives cash sales – audit work
identification of significant audit areas.
required to determine the completeness
The materiality level for audit planning of sales.
purposes.
Timing and extent of audit procedures Details of the focus on audit work on Audit software could be used to provide
specific areas. Detail on the extent of use analytical procedures on the sales of
of audit software and possible reliance B-Star
on internal audit.
Co-ordination, supervision and review of Details the extent of involvement of B-Star has only one location – audit staff
audit work experts, client locations and staffing will be required to work there for X
requirements for the audit. weeks.
