TABLE OF CONTENTS ICPAK AUDIT MANUAL DISCLAIMER The table will be formatted and updated in the final version including a complete list of all the forms and audit programmes with the relevant document reference numbers. PART A: AUDIT OBJECTIVES, RESPECTIVE RESPONSIBILITIES AND AUDIT FILE CONTENTS 1. INTRODUCTION 1.1. Scope of the manual 1.2. Structure of the manual 1.3. Matters not dealt with in the manual 1.4. Glossary of terms 4.1. Ethical requirements in respect to audit engagements 4.2. Quality control 4.3. Engagement quality control review 2. AUDIT OBJECTIVES AND RESPECTIVE RESPONSIBILITIES (INCORPORATING ISA 200) 2.1. Objectives and general principles of an audit 2.2. Stages of an audit 2.3. Use of standard forms and programmes 2.4. Responsibility for the financial statements 2.5. Responsibilities of the engagement team 3. AUDIT FILES AND WORKING PAPERS (INCORPORATING ISA 230) 3.1. Types of audit files 5.2. 3.2. Layout of audit files 3.3. Working papers contents 5.4 3.4. Ownership, safe custody and retention of working papers and files 5.5. Appendices: · Current audit file index · Permanent audit file index PART B: QUALITY CONTROL AND CLIENT ACCEPTANCE 4. ETHICAL REQUIREMENTS AND QUALITY CONTROL IN RELATION TO AUDIT ENGAGEMENTS (INCORPORATING ISQC 1 ISA 220 and COE) 4.4. Engagement quality control reviewer 4.5. Consultations 4.6. Resolving differences in opinions Appendices: · Annual independence confirmation 5. AUDIT ENGAGEMENT (INCORPORATING ISQC 1, ISA 210 and ISA 220) 5.1 Client acceptance Terms of audit engagement and changes thereto 5.3. Continuation Ceasing to act Non-audit engagements Appendices: · Specimen audit engagement letter PART C: KEY AUDIT AREAS 6. PLANNING (INCORPORATING ISA 300) 6.1. Planning 6.2. Key task in the planning process 6.3. Time costing Developed by the Institute of Certified Public Accountants of Kenya Funded by the FIRST Initiative 1 of 6
TABLE OF CONTENTS ICPAK AUDIT MANUAL 6.4. Time budgeting Appendices: . Matters that an auditor should consider in developing an audit strategy · Contents of the audit plan 7. ACCOUNTING SYSTEMS AND CONTROLS (INCORPORATING ISA 315 and 402) 7.1. Risk assessment 7.2. Assessment of systems and controls at the planning stage 7.3. Assessment of the control environment 7.4. Recording and assessment of the accounting and information systems 7.5. Inadequate records or systems 7.6. Types of controls and identifying key controls 7.7. Framework for assessing controls 7.8. Detail testing of internal controls 7.9. Areas of potential control weaknesses 7.10. Drawing conclusions on tests of internal controls Appendices: · Factors to consider in understanding an entity's control environment · Internal control components · Conditions and events that may indicate risk of material misstatement · Management letter 8. AUDITOR'S RESPONSIBILITY TO CONSIDERING FRAUD (INCORPORATING ISA 240) 8.1. Introduction 8.2. Characteristics of fraud 8.3. Professional scepticism 8.4. Audit procedures in relation to fraud 8.5. Evaluation of audit evidence 8.6. Reporting Appendices: · Examples of fraud risk factors . Audit procedures to address the assessed risk of fraud · Circumstances that indicate possibility of fraud 9. AUDITORS RESPONSIBILITY TO CONSIDER LAWS AND REGULATIONS (INCORPORATING ISA 250) 9.1. Introduction 9.2. Considering compliance with law and regulations