Audit-Pedia

by CA Kamal Garg

CONTENTS AT A GLANCE

Bharat?	5
Preface	7
Topic Wise Index	15
Detailed Contents	21

Chapter 1 True and Fair View 1
Chapter 2 Materiality	3
Chapter 3 Going Concern	6
Chapter 4 Emphasis of Matter (EOM)	8
Chapter 5 Audit Risk	10
Chapter 6 Independence	13
Chapter 7 Assertions	16
Chapter 8 Audit Documentation or Audit File or Working Papers	19
Chapter 9 Professional Skepticism	21
Chapter 10 Internal Control	23
Chapter 11 Audit Evidence	26
Chapter 12 Related Parties	28
Chapter 13 Fraud	31
Chapter 14 Sampling	34
Chapter 15 Analytical Procedures	37
Chapter 16 Test of Controls	40
Chapter 17 Test of Details	42
Chapter 18 External Confirmations	43
Chapter 19 Written Representations	45
Chapter 20 Subsequent Events	47
Chapter 21 Comparative Information	50
Chapter 22 Opening Balances	55
Chapter 23 Audit of Accounting Estimates	58
Chapter 24 Management Bias	60
Chapter 25 Using the Work of an Auditor's Expert	62
Chapter 26 Management's Expert	64
Chapter 27 Using the Work of another Auditor	66
Chapter 28 Using the Work of Internal Auditors	69
Chapter 29 Audit Committee under Companies Act, 2013	71
Chapter 30 Communication with those Charged with Governance (TCWG) and Management	73
Chapter 31 Joint Audit	75
Chapter 32 Unqualified (Clean) Audit Report	77
Chapter 33 Qualified Audit Report	79
Chapter 34 Adverse Audit Report	81
Chapter 35 Disclaimer of Opinion	84
Chapter 36 Emphasis of Matter Paragraph	86
Chapter 37 Other Matter Paragraph	88
Chapter 38 Key Audit Matters (KAMs)	90
Chapter 39 The Auditor's Responsibilities Relating to Other Information (SA 720 - Revised)	92
Chapter 40 Professional Judgment	96
Chapter 41 Premise	99
Chapter 42 Risk of Material Misstatement	101
Chapter 43 Applicable Financial Reporting Framework	103
Chapter 44 Experienced Auditor	105
Chapter 45 Misstatement	107
Chapter 46 Clearly Trivial Misstatements	110
Chapter 47 Materiality in the Context of an Audit	112
Chapter 48 Materiality and Audit Risk	115
Chapter 49 Benchmarking	188
Chapter 50 Cut-off Procedures	120
Chapter 51 Substantive Analytical Procedures	122
Chapter 52 Compliance Procedures and Substantive Procedures	124
Chapter 53 Sufficient and Appropriate Audit Evidence	126
Chapter 54 Types of Audit Evidence	128
Chapter 55 Corroborative Audit Evidence	130
Chapter 56 Risk Assessment Procedures	132
Chapter 57 Audit Planning and Audit Strategy	134
Chapter 58 Audit Programme	137
Chapter 59 Planning Activities	139
Chapter 60 Internal Check	141
Chapter 61 Nature, Timing, and Extent of Audit Procedures	143
Chapter 62 Permanent File and Current File in Audit Documentation	145
Chapter 63 Assertions	147
Chapter 64 Engagement Team, Firm, and Personnel	149
Chapter 65 Network and Network Firm	151
Chapter 66 Engagement Quality Control Review	153
Chapter 67 Elements of a System of Quality Control	155
Chapter 68 Engagement Partner and Key Audit Partner Rotation Requirements	157
Chapter 69 Leadership Responsibilities for Quality within the Firm	159
Chapter 70 Ethical Requirements and Independence	161
Chapter 71 Acceptance and Continuance of Client Relationships and Audit Engagements	163
Chapter 72 Human Resources	165
Chapter 73 Engagement Performance	167
Chapter 74 Monitoring under SQC 1	169
Chapter 75 Complaints and Allegations under SQC 1	171
Chapter 76 Engagement Partner Responsibility	173
Chapter 77 Differences of Opinion within the Engagement Team	176
Chapter 78 Engagement Documentation	178
Chapter 79 Engagement Partner Change During an Ongoing Audit	180
Chapter 80 Quality Control Manual	182
Chapter 81 Letter of Engagement	184
Chapter 82 Recurring Audits	185
Chapter 83 Letter of Weakness	186
Chapter 84 Audit Considerations Relating to an Entity Using a Service Organisation	187
Chapter 85 Assurance Reports on Controls at a Service Organisation	189
Chapter 86 Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks	191
Chapter 87 Audits of Single Financial Statements and Specific Elements, Accounts or Items of a Financial Statement	193
Chapter 88 Engagements to Report on Summary Financial Statements	195
Chapter 89 Review Engagements	197
Chapter 90 Contradictory Evidence	200
Chapter 91 Compilation Engagements	201
Chapter 92 Agreed-Upon Procedures Engagements	202
Chapter 93 Walkthrough Procedures	203
Chapter 94 Vouching v Verification	204
Chapter 95 Audit Trail	206
Chapter 96 Surprise Check	207
Chapter 97 Examination in Depth	208
Chapter 98 Computer-Assisted Audit Techniques (CAATs)	209
Chapter 99 IT Controls	210
Chapter 100 Entity Level Controls (ELCs)	211
Chapter 101 Transaction Level Controls (TLCs)	212
Chapter 102 Reasonable Assurance	213
Chapter 103 Absolute Assurance	215
Chapter 104 Moderate Assurance	217
Chapter 105 Financial Statements	219
Chapter 106 Historical Financial Information	221
Chapter 107 Purpose and Objective of Audit	223
Chapter 108 Audit and Auditor	224
Chapter 109 Magnitude	226
Chapter 110 General Purpose Financial Statements	228
Chapter 111 Terms of the Audit Engagement	230
Chapter 112 Non-Compliance with Laws and Regulations	232
Chapter 113 Information and Explanations	234
Chapter 114 Necessary for the Purpose of His Audit	237
Chapter 115 Sought and Obtained All the Information and Explanations	239
Chapter 116 Uncorrected Misstatements	241
Chapter 117 Undetected Misstatements	243
Chapter 118 Deficiency in Internal Control	245
Chapter 119 Significant Deficiency in Internal Control	246
Chapter 120 Business Risk	248
Chapter 121 Significant Risk	249
Chapter 122 Sampling Risk	250
Chapter 123 Population	251
Chapter 124 Anomaly	252
Chapter 125 Non-Sampling Risk	253
Chapter 126 Sampling Unit	254
Chapter 127 Statistical Sampling	255
Chapter 128 Stratification	256
Chapter 129 Tolerable Misstatement	257
Chapter 130 Tolerable Rate of Deviation	258
Chapter 131 Roll Forward and Roll Backward Procedures	259
Chapter 132 Physical Inventory Count	262
Chapter 133 Non-Responses in External Confirmations	265
Chapter 134 Addressing Doubts on the Reliability of Confirmation Responses	267
Chapter 135 Oral Responses to Confirmation Requests	269
Chapter 136 Predecessor Auditor	270
Chapter 137 Plausible Relationships Among Financial and Non-Financial Data	271
Chapter 138 Additional v Alternative Audit Procedures	272
Chapter 139 Projecting Misstatements	273
Chapter 140 Auditor's Point Estimate or Range	274
Chapter 141 Estimation Uncertainty	275
Chapter 142 Management's Point Estimate	276
Chapter 143 Outcome of an Accounting Estimate	277
Chapter 144 Mitigating Factors (Going Concern)	278
Chapter 145 Material Uncertainty for Going Concern	279
Chapter 146 Indicators for Going Concern	280
Chapter 147 Appropriateness or Inappropriateness of Going Concern 281
Chapter 148 Safeguards - Managing Threats to Compliance with Fundamental Principles	282
Chapter 149 Threats to Independence	284
Chapter 150 Public Interest Entity (PIE)	286
Chapter 151 NOCLAR - Non-Compliance with Laws and Regulations	288
Chapter 152 Risk Control Matrix (RCM)	291
Chapter 153 Sign-off	296
Chapter 154 Ticking, Tagging and Tracing	299