Audit Planning Memo template PDF

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Audit planning memo...

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Audit Planning Memo MATERIALITY Users of financial statements, objectives, reliance: x Basis for materiality: x Applicable %: x% Overall materiality (User focused)

(x)(x) = $x

x$

Performance materiality (Auditor-focussed)

60-90% of overall materiality

x$

Specific materiality (for accounts that users are particularly concerned about) Specific performance materiality

50% of overall materiality

x$ x$

Overall amount of misstatement deemed immaterial to decision-making Overall amount of misstatement deemed immaterial to decision-making during testing for maintenance of conservative approach Overall amount of misstatement to a single account deemed immaterial to decision-making. Overall amount of misstatement to a single account deemed immaterial to decision-making during testing for maintenance of conservative approach.

RISK Risk at the overall financial statement level Factors effecting risk x x

Impact

Explanation Increases/decreases risk: x

Conclusion: Risk at the overall financial statement level

APPROACH Control risk assessment: x Approach and implications: x (substantive = control risk is high, combined = control risk is low)

PROCEDURES Account x

Risk x

Assertion x

Procedure x

Procedures are usually based on: (1) accounts impacted by FR issues (2) other account risk triggers Designing a procedure: (1) identify relevant object (ie: specific piece of documentation, asset valuation, A/R detail, etc.) (2) Describe verb to perform on object (ie: vouching, tracing, etc.)...