Conclusion

Appropriate subject matter Financial statements

Users - shareholders

Three party relationship Practitioner - auditor

Elements
Responsible party - management

Suitable criteria Accounting standards 

Sufficient, appropriate evidence

Audit Stages

Obtain understanding of entity and environment

Set materiality limits

Risk of material misstatement

Inherent Risk 

Control environment 

Entity's risk assessment process 

Information processing

Performance reviews

Categories Authorization

Physical controls

Segregation of duties

Completeness
Control activities
Occurrence
Planning
Audit Risk  Control Risk 
Transaction-level Cut-off

Accuracy
Data Audit
Classification
Taxation Audit Objectives
Effectiveness and efficiency of operations
Environmental Audit
Non-Financial Reliability of management reporting, analysis and
Audit of Internal Controls decision-making
Entity-level

Fraud Investigation/Forensic Audit Reliability of financial reporting

Assurance Engagement Compliance with applicable laws and regulations

Negative Information system 

Limited Monitoring of controls 

Levels
Reasonable
Detection Risk 

Risk assessment techniques

Develop response to assessed risks

Controls testing
Audit evidence
Substantive testing

Sufficiency
Execution

Reliability - Source
Audit Process
Appropriateness Reliability - Nature

Relevance

Documentation

Completion procedures

Evaluation of audit evidence

Management representations

Completion
Communicating with management and those
charged with governance

Internal completion documents

Quality control over the audit engagement

Audit report

Ongoing elements

Risk assessment

Engagement and client management

Financial Statement Audit  Pre-engagement

Acceptance and continuance

Engagement letter

Self-interest

Self-review

Threats to independence Advocacy

Familiarity

Intimidation

Eliminate the threat

Integrity, objectivity and independence Reduce the threat to an acceptable level

Safeguards
Continued awareness

Communication with those charged with governance

Remove the individual(s) from the audit team

Alternative scenarios Refuse to accept the audit engagement

Ethical standards Resign from the audit engagement

Financial, business, employment and personal

relationships

Long association with audit engagement

Fees, remuneration and evaluation policies,

litigation, gifts and hospitality

Non-audit services provided to audit clients