1st Evals

2nd Evals
2nd Evals

3rd Evals
3rd Evals

4th Evals
AUDIT OF BUSINESS PROCESS
• Order to Cash
• Plan to Inventory

o Nature and function of the business processes

o Types of transactions and financial statement accounts affected
o Types of documents and accounting records involved
o Control objectives and risk assessment on business processes
o Audit Procedures per business processes
AUDIT OF CASH AND CASH TRANSACTIONS
1.1 Specific audit objectives, audit procedures, and internal control for cash on hand and in
banks.
1.2 Analysis and classification of cash balances
1.3 Cash counts
1.4 Bank reconciliations
1.5 Bank confirmation request 1.6 Cash Cutoff
AUDIT OF RECEIVABLES, RELATED REVENUES AND CREDIT LOSSES
2.1 Specific audit objectives, audit procedures and internal control for receivables
2.2 Analysis of current receivables
2.3 Analysis of non-current receivables
2.4 Impairment of receivables
2.5 Audit working papers

AUDIT OF INVENTORIES AND RELATED ACCOUNTS

3.1 Specific audit objectives, audit procedures and internal control measures for inventories
3.2 Test of existence and ownership
3.3 Test of accuracy and proper valuation
3.4 Ratio analysis and gross profit method
3.5 analytical procedure – Retail method of inventory
3.6 Audit working papers
AUDIT OF BUSINESS PROCESS
• Acquire to Retire

o Nature and function of the business processes

o Types of transactions and financial statement accounts affected
o Types of documents and accounting records involved
o Control objectives and risk assessment on business processes
o Audit Procedures per business processes
AUDIT OF FIXED ASSETS (PROPERTY, PLANT
AND EQUIPMENT, INVESTMENT PROPERTY) AND RELATED
VALUATION ACCOUNTS
4.1 Specific audit objectives, audit procedures, and internal control for property, plant, and
equipment and related valuation accounts
4.2 Test of existence and ownership
4.3 Test of accuracy and proper valuation (construction, acquisition, depreciation, revaluation,
and impairment)
4.4 Specific Audit procedures for presentation of fixed assets in the financial statement.
AUDIT OF INTANGIBLE ASSETS AND RELATED
VALUATION ACCOUNTS
5.1 Specific audit objectives, audit procedures, and internal control for intangible assets and
related valuation accounts
5.2 Test of existence ownership
5.3 Test of accuracy and proper valuation (acquisition, amortization, revaluation, and
impairment)
5.4 Audit working papers
AUDIT OF INVESTMENTS AND OTHER FINANCIAL INSTRUMENTS AND
RELATED REVENUES (EQUITY INVESTMENTS AT FV AND ASSOCIATE)
6.1 Specific audit objectives, audit procedures, and internal control for equity investments and
instruments, at fair value and related revenues
6.2 Test of existence and ownership
6.3 Test of proper valuation and classification
AUDIT OF BUSINESS PROCESS
• Purchase to Pay
AUDIT OF INVESTMENTS AND OTHER FINANCIAL INSTRUMENTS AND
RELATED REVENUES (DEBT INVESTMENTS)
6.4 Specific audit objectives, audit procedures, and internal control for debt investments and
related revenues
6.5 Test of existence and ownership
6.6 Test of proper valuation and classification
AUDIT OF LIABILITIES AND RELATED ACCOUNTS - CURRENT
7.1 Specific audit objectives, audit procedures and internal control for accounts payable,
accrued expenses, provisions and other short-term liabilities.
7.2 Specific audit objectives, audit procedures and internal control for accounts and notes
payable and related expenses
7.3 Specific audit objectives, audit procedures for events affecting the classification of
liabilities in the financial statement.
7.4 Transactional analysis of current liabilites and related accounts
7.5 Case Analysis
AUDIT OF LIABILITIES AND RELATED ACCOUNTS – NON-CURRENT
8.1 Specific audit objectives, audit procedures and internal control for long term notes
payable.
8.2 Specific audit objectives, audit procedures and internal control for bonds payable and
related accounts.
8.3 Specific audit objectives, audit procedures for events affecting the classification of
liabilities in the financial statement and restructuring of liabilities.
8.4 Transactional analysis of non-current liabilites and related accounts
8.5 Case Analysis
AUDIT OF SHAREHOLDER’ EQUITY
9.1 Audit working papers
9.2 Specific audit topics:
9.3 Reserves, dividends, treasury shares, appropriation, splits
9.4 Share-based payment
9.5 Transactional analysis of shareholder’s equity
9.6 Case Analysis
AUDIT OF BUSINESS PROCESS
• Hire to Retire
• Record to report, and other business processes

o Nature and function of the business processes

o Types of transactions and financial statement accounts affected
o Types of documents and accounting records involved
o Control objectives and risk assessment on business processes
o Audit Procedures per business processes

SPECIAL AUDIT CONSIDERATIONS – INCOME AND DEFERRED TAXES

10.1 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to income and deferred taxes.
10.2 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to current tax expense, deferred tax expense and total tax expense.
10.3 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to deferred tax assets and deferred tax liabilities.
SPECIAL AUDIT CONSIDERATIONS – LEASES
11.1 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to lease transactions for operating lease and finance lease (lessee)
11.2 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to lease transactions for operating lease and finance lease (lessor)
11.3 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to lease transactions for operating lease and finance lease (lessee)
11.4 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to lease transactions for operating lease and finance lease (lessor)
11.5 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to lease transactions for sale-leaseback transaction.
SPECIAL AUDIT CONSIDERATIONS – EMPLOYEE BENEFITS
12.1 Specific audit objectives, audit procedures and internal control for employee benefits
transactions.
12.2 Specific audit objectives, audit procedures and internal control for reasonableness of
amounts in benefits expense in profit or loss and other comprehensive income.
12.3 Specific audit objectives, audit procedures for events affecting the classification of
accounts related to employee benefits and the presentation in the financial statement.
AUDIT OF FINANCIAL STATEMENTS

ERROR CORRECTIONS

CASH TO ACCRUAL AND SINGLE-ENTRY SYSTEM

1st Evals
2nd Evals
3rd Evals
4th Evals
Review of Corporate Governance

Introduction about Assurance, Other Assurance Services and Non-Assurance Services,

Overview of Auditing – Financial Statement Audit and Other Topics
Accepting the engagement and planning the audit
• Client acceptance and continuance
• Establishing an understanding of the terms of the engagement
• Assessing risks and making preliminary judgments about materiality levels
Planning the audit
• Audit team composition and roles, with evaluation of compliance with ethical and
technical requirements including Independence
• Establishing budget
• Planning meeting with client and with audit team
• Other critical matters in engagement planning
Obtaining an understanding of the client’s business and industry
• Performing preliminary analytical procedures
• Developing preliminary audit strategies for significant assertions
Auditor’s responsibilities relating to fraud in FS audit
• Considerations of laws and regulation in FS audit
• Assessing the risk of material misstatement Due to Error or Fraud
• Communication with those charged with governance
Describe the direction, supervision, and review in an audit team

Risk assessment, materiality, and audit strategies

Audit risk model and its usage and limitations
The auditor’s risk assessment process
• Business Risk and the Risk of Material Misstatement
• Understanding the Entity and Its Environment
• Auditor’s Risk Assessment Procedures
Conditions and Events that may Indicate Risks of Material Misstatement
Materiality and steps in applying materiality
• Relationship between materiality and audit risk
Concept of audit strategy, audit plan, and audit program
Internal control in a Financial Statement Audit
• Basic concepts and elements of internal control and its limitation
• Illustration of typical internal control
• Evaluation of internal control in a financial statements audit
• How adequacy of inadequacy of internal control affects audit procedures
• Communication of material weaknesses in internal control
Audit Evidence
• Concept of evidence
• Gathering and evaluating information produced by the entity and audit evidence
• Concept of sufficient appropriate audit evidence
Audit Procedures
• Inspection
• Observation
• Inquiry
• Confirmation
• Recalculation/Reperformance
• Substantive analytical procedures
• Journal-entry testing and related procedures.
Audit Assertions
Audit Documentation
• Purposes, forms, format, and content of working papers
• Types of files
• Ownership, confidentiality, and retention of working papers
• Review of working papers
Other substantive audit considerations
• Auditing accounting estimates and related disclosures
• Auditing fair value measurements and related disclosures
• Review of related party transactions
• Procedures regarding litigation, commitments, contingent liability, and other
potential unrecorded liabilities
• Evaluating the financial statement presentation and disclosures
Audit Sampling
Basic concepts
• Nature and purposes
• Why auditors sample
• Testing procedures without sample
• Sampling and non-sampling
• Statistical and non-statistical sampling
• Attributes and variable sampling
• Sample size and sample selection methods
Steps in the application of audit sampling
Audit sampling for substantive tests
• Probability-proportional to size sampling
• Classical variables sampling
1. Mean-per-unit estimation
2. Ratio estimation
3. Difference estimation
4. Regression analysis
Non-statistical sampling for test of controls and substantive testing
Completing the audit and other post-audit responsibilities
• Using the works of others
• Audits of group financial statements (including the work of other component
auditors)
• Using the work of an auditor’s expert
• Initial audit engagement – Opening Balances
• Different prior-year auditors
• Going concern consideration
• Analytical procedures in the overall or final review stage
• Review of subsequent events for audit of financial statements and documenting
facts discovered after the financial statement has been issued
• Review of minutes of the meetings
• Final assessment of audit results
• Revisit the audit strategy and audit plan
• Communications of audit matters with those charged with governance and
management letter preparation
• Obtain representation letter from the management and management letter
• Evaluating findings, formulating an opinion, and drafting the audit report
• Monitoring and closing the engagement.
Reports on audited financial statements
• Standard audit report with an unmodified opinion
• Basic elements of a standard audit report with an unmodified opinion
• Communicating Key Audit Matters in the Independent Auditor’s Report
• Emphasis of matter paragraphs and other matters paragraphs
• Audit reports with modifications to the auditor’s opinion
• Reports on comparatives
• Reports on group financial statements audit
• Other information in documents containing audited financial statements and annual
report
• Other reporting considerations
Nature and Reports on other services
• Independent auditor’s report on special purpose audit engagements
• Procedures and reports for non-audit engagements
o Examination of prospective financial information
o Review of financial statements
o Agreed-upon procedures regarding financial information
o Compile financial information
Auditing in a Computerized Information Systems (CIS) Environment

Internal control in a CIS environment

• Impact of computers on accounting and internal control systems
o General Controls
o Application controls
• Unique characteristics of specific CIS
o Stand alone
o On-line
o Database system
Basic approach to the audit of CIS environment
• Effects of computers on the audit process
• Computer assisted audit techniques
• Electronic commerce
• Auditing new technologies
Practice of Accountancy Profession
• Philippine Accountancy Act of 2004
• Accounting and Auditing Standard Setting Council
• Advertising for the Philippine Accountancy Profession
• Continuing Professional Education/Continuing Professional Development
• Regulatory bodies affecting practice of accounting profession
• Regulatory requirements related to the practice, accreditation and regulation of
public accounting and auditing services

System of Quality Management Part I

• Elements of a system of quality management
• Leadership responsibilities
• Ethical requirements
• Acceptance and continuance

System of Quality Management Part II

• Human resources
• Engagement performance
• Monitoring
• Documentation of the System of Quality Management

Code of Professional Ethics

• Fundamental principles and its conceptual framework
• Conduct of Professional Accountants in Public Practice
• Conduct of Professional Accountants in Business

Latest audit trends and awareness to the new policies and procedures in the profession