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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