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Audit US - Practice Aids

Audit US practice aids are listed in the following table. The authors have indicated the classification of each practice aid into one of three categories:

  • Required - Completion of the practice aid will fulfill GAAS requirements. Note that the practice aids have been designed for a small and medium-sized (SME) non-public company, and do not address the wide range of circumstances, risk factors or specific industry issues that may exist for a particular client or groups of clients (such as those operating in a specialized industry).
  • Optional - The practice aids may be used by the auditor to improve efficiency of the audit, but by themselves the practice aids do not fulfill a specific GAAS requirements.
  • Conditional - The practice aid assists the auditor with conditions that do not occur in every audit (i.e. group audits, internal audit). Driven through the Audit optimizer - if the client has the condition, the practice aid will be included in the engagement file and it fulfills the GAAS requirements.

There are different ways to complete audit documentation to meet the requirements of U.S. GAAS. Audit US includes a series of practices aids to guide auditors through the process. In some cases, it may be more efficient to create a memo document. When using a memo format auditors are reminded that they are required to ensure that they address all of the applicable standards and that the documentation is sufficient and appropriate. Documentation needs to be prepared in sufficient detail to enable an experienced auditor, having no previous connection with the audit, to understand the work performed. The level of documentation will depend on the particular audit engagement and the risks of any particular areas.

Document Index Required (Extended) Required (OneForm) Optional Conditional
Optimizer
400-A - Optimizer checklist - File Setup - - Yes -
400-B - Optimizer checklist - File Setup - - Yes -
400-1 - Optimizer checklist - Reporting - - Yes -
AOCR - Audit optimizer confirmation report - - Yes -
Audit
ONEFORM - Audit memo - Yes - -
Planning
Client Acceptance/Continuance
405 - Engagement - Acceptance/Continuance - - - Yes
405-1 - Independence - - - Yes
408 - Initial audit engagements - Opening balances - - - Yes
415 - Terms of engagement - Engagement letter Yes Yes - -
418 - Letter to a predecessor accounting firm - - Yes -
419 - Letter to a successor accounting firm - - Yes -
Materiality
420 - Materiality Yes Yes - -
Overall Audit Strategy
425 - Planned risk assessment procedures Yes - - -
427 - Selecting an auditor's specialist - - - Yes
428 - Hiring an external audit specialist - - - Yes
430 - Overall audit strategy Yes - - -
431 - Audit planning letter - Those charged with governance - - - Yes
435 - Understanding and evaluation of a service organization - - - Yes
438 - Understanding and evaluation of the internal audit function - - - Yes
Client Meetings and Deliverables
445 - Information/analysis requested from management - - Yes -
448 - Firm deliverables and client information - - Yes -
449 - Firm deliverables and client information letter - - Yes -
Team Discussions
450 - Team planning discussions - Brainstorming Yes - - -
450-1 - Team planning discussions - Brainstorming - Action plan Yes - - -
455 - Fraud scenarios - - Yes -
Time Budget
470 - Time Budget - - Yes -
Planning Overview
480 - Planning overview - - Yes -
Risk Assessment
Identify Financial Statement Assertions and Underlying Business Process
FSA - Financial statement areas worksheet Yes Yes - -
Understanding the Entity
505 - Identifying risks through understanding the entity Yes - - -
506 - Understanding the IT environment - - Yes -
506-1 - Understanding the IT environment - Listing - - Yes -
Risk Assessment Procedures
515 - Analytical review - Ratios - Preliminary - - Yes -
515-1 - Analytical review - Balances - Preliminary - - Yes -
525 - Identifying fraud risks Yes - - -
530 - Minutes of governance meetings Yes - - -
530-1 - Minutes of governance meetings Yes - - -
540 - Notes on meetings with management and others - - Yes -
545 - Understanding accounting estimates Yes - - -
547 - Outcome of prior period accounting estimates Yes - - -
556 - Going concern - Identifying events and conditions Yes - - -
Identified Risks
560-1 - Risk report - Risk identification - - - Yes
560-2 - Risk report - Fraud risk - - - Yes
560-3 - Risk report - Management override of controls - - - Yes
Risks per Business Cycle
560-4 - Risk report - Risk per cycle - - - Yes
Control Design
565 - Entity-level risk and controls Yes - - -
566 - General IT controls Yes - - -
570 - Control design/implementation - Entity level and general IT controls Yes - - -
572 - Control design/implementation - Revenues, receivables, receipts - - - Yes
574 - Control design/implementation - Purchases, payables, payments - - - Yes
576 - Control design/implementation - Payroll - - - Yes
578 - Control design/implementation - Financial reporting - - - Yes
580 - Control design/implementation - Inventory - - - Yes
582 - Control design/implementation - Investments - - - Yes
Implementation of Controls/Walkthrough Procedures
590 - Control implementation - Business process controls - - Yes -
Risk Assessment Summary
560-5 - Risk report - Summary of control risk assessment - - - Yes
560-6 - Risk report - Risk assessment - - - Yes
560-7 - Risk report Yes - - -
Risk Response
Substantive Procedures
Tests of Control
610 - Sampling - Test of controls - Revenues, receivables, receipts - - - Yes
610-1 - Sampling - Test of controls - Revenues, receivables, receipts - Sample size - - - Yes
612 - Sampling - Test of controls - Purchases, payables, payments - - - Yes
612-1 - Sampling - Test of controls - Testing results - Purchases, payables, payments - Sample size - - - Yes
614 - Sampling - Test of controls - Payroll - - - Yes
614-1 - Sampling - Test of controls - Testing results - Payroll - Sample size - - - Yes
616 - Sampling - Test of controls - Financial reporting - - - Yes
616-1 - Sampling - Test of controls - Testing results - Financial reporting - Sample size - - - Yes
618 - Sampling - Test of controls - Investments - - - Yes
618-1 - Sampling - Test of controls - Testing results - Investments - Sample size - - - Yes
620 - Sampling - Test of controls - Inventory - - - Yes
620-1 Sampling - Test of controls - Testing results - Inventory - Sample size - - - Yes
625 - Sampling - Test of pervasive (entity-level) controls - - - Yes
625-1 - Sampling - Test of pervasive (entity-level) controls - Testing results - - - Yes
General Audit Procedures
630 - Evaluating the work of an auditor's specialist - - - Yes
636 - Going concern evaluation - - - Yes
640 - Summary of external confirmations - - Yes -
645 - Accounting estimates (including fair values) - - - Yes
650 - Litigation, claims, assessments and noncompliance Yes - - -
655 - Subsequent events Yes - - -
660 - Analytical procedures - Ratios - Final - - Yes -
660-1 - Analytical review - Balances - Final - - Yes -
665 - Related-party transactions Yes - - -
670 - Testing of journal entries Yes - - -
Group Audits
680 - Group audit - - - Yes
685 - Group audit - Group component summary - - - Yes
Completion Documents
Identified Misstatements
700 - Summary of identified misstatements Yes Yes - -
700-1 - Summary of identified misstatements checklist Yes - - -
702 - Adjusted journal entries - All Yes Yes - -
702-1 - Adjusted journal entries - Corrected by client - - Yes -
702-2 - Adjusted journal entries from client - - Yes -
702-3 - Uncorrected misstatements - All - - Yes -
702-4 - Unrecorded misstatements - Factual - - Yes -
702-5 - Unrecorded misstatements - Projected - - Yes -
702-6 - Unrecorded misstatements - Judgemental - - Yes -
Evaluate Audit Evidence
705 - Partner and manager summary - - - Yes
710 - Documentation checklist Yes - - -
715 - Reporting checklist Yes Yes - -
720 - Engagement quality control review checklist - - - Yes
724 - Risk report - Risk addressed - - - Yes
Audit Findings
725 - Notes on significant audit matters - - Yes -
728 - Audit findings and matters for discussion - - Yes -
Financial Statement and Audit Report Review
730 - Report transmittal - - Yes -
Reports to Those Charged with Governance
745 - Matters to be communicated to TCWG (those charged with governance) Yes - - -
750 - Significant deficiencies report Yes - - -
755 - Material weakness report Yes - - -
760 - Other deficiencies report - - Yes -
765 - Management letter Yes - - -
770 - Report for those charged with governance Yes - - -
775 - Audit findings Yes - - -
777 - Communicating deficiencies in internal control - - Yes -
Management Representations
780 - Written representations - Management representation letter Yes Yes - -
782-1 - Uncorrected misstatements - All - - Yes -
782-2 - Summary of identified misstatements - Client - Signed Yes - - -
Engagement Wrap-Up
785 - Checklist - Audit completion Yes - - -
790 - Matters for future consideration - - Yes -
795 - Consideration of omitted procedures after the report release date - - Yes -

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