To be completed by the Reviewer

AUDIT ENGAGEMENTS CHECKLIST MEMBER CODE: REVIEWER: DATE OF REVIEW: _____________________________ _____________________________

This checklist is for use at Quality Assura ce Re!ie"s of #IA Me$%ers i &u%lic &ractice' Re!ie"ers shoul( also use the )u**le$e tary checklist if the re!ie" is of a liste( e tity+ or if (irecte( to it %y the a s"ers they ,i!e i this -uestio aire' #ote there is a se*arate checklist for Au(its of )elf Ma a,e( )u*era uatio Fu (s' There is a se*arate colu$ for each file you re!ie"' Where $ore tha o e #IA &u%lic &ractice Me$%er is e ,a,e( i the *ractice+ use a se*arate co*y of the checklist for each Me$%er' SUMMARY Au(it e ,a,e$e ts are (esi, e( to *ro!i(e a le!el of co fi(e ce i the !ali(ity of the re*orti , or other re*rese tatio of $atters au(ite(' . like co$*ilatio e ,a,e$e ts+ au(it e ,a,e$e ts do i clu(e checki , the accuracy or !ali(ity of the i for$atio a ( for$i , a /u(,e$e t' The Australia Au(iti , a ( Assura ce )ta (ar(s Boar( 0AuA)B1 issues Australian Auditing Standards (ASA), "hich for$ the $ai %asis for this checklist+ a ( Au(iti , 2ui(a ce )tate$e ts 0A2)1' APES 410 Conforming With Audit nd A!!ur nce St nd rd! sets out the re-uire$e ts that $e$%ers $ust co$*ly "ith Australia Au(iti , )ta (ar(s "he co (ucti , au(it or assura ce e ,a,e$e ts+ a ( that Au(iti , 2ui(a ce )tate$e ts $ay %e a useful ,ui(e' ronoun!"#"nt Nu#$"r % Con&or#it' (it) A!!ounting Standards and Urg"nt Issu"s Grou* Cons"nsus +i"(s i clu(es re-uire$e ts for au(it+ as "ell as *re*aratio + of fi a cial re*orts+ so is rele!a t for this checklist' It i clu(es (efi itio s of )*ecial 3 2e eral &ur*ose Fi a cial Re*orts etc'

T'*" ,& Entit' Co$*a y *u%lic lar,e *ro*rietary co$*a y li$ite( %y ,uara tee e tities s$all *ro*rietary co$*a y Trusts Trust accou ts accou ta t solicitor re,istere( trai i , or,a isatio real estate tra!el a,e t other

-il" Cod" A B C D E F 2 4 5 6 7

T'*" ,& Entit' )u*era uatio fu ( *u%lic offer fu (

-il" Cod"

o 8self8$a a,e( su*er fu ( O other & Me$%ershi* Or,a isatio s+ Charities+ )chools etc9 Q i cor*orate( associatio s R u i cor*orate( associatio s ) 2ra ts+ ac-uittal au(its T 4o orary Au(it . Other ________________0s*ecify1 :_____

9See Guidance document for explanation of this category

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(enter file identification/ code eg file number abbreviate here & list elsewhere if necessary) ./ ACCE TANCE ,- ENGAGEMENT >'> 4as the e ,a,e$e t *art er co fir$e( that a**ro*riate e ,a,e$e t acce*ta ce @ co ti ua ce *roce(ures ha!e %ee follo"e(+ co clu(e( o a ( (ocu$e te(+ i clu(i , co si(eri , ethical co$*lia ce a ( e ,a,e$e t ter$s at the %e,i i , of the au(it co siste t "ith the au(itorEs *olicyF 0A)A ;;<'>=+ A)A A<<'G1 Di( the *roce(ures i clu(e co si(eratio of: 0a1 clie t i te,rityH 0%1 co$*ete ce+ ti$e a ( resources of the e ,a,e$e t tea$H 0c1 ca*acity of fir$ a ( tea$ to co$*ly "ith ethical re-uire$e tsH 0(1 ca*acity of the e ,a,e$e t tea$ to *erfor$ the au(it i accor(a ce "ith Au(iti , )ta (ar(s+ re,ulatory a ( le,al re-uire$e ts+ i clu(i , i(e tificatio of: the e tity ty*eH the e tityEs re*orti , o%li,atio sH a y eIter ally i$*ose( au(it $a (ateH a ( a y au(itor eli,i%ility re-uire$e ts 0e, re,istere( co au(itor+ *u%lic *ractice certificate+ $a (atory trai i , o trust accou ts etc1 0e1 a%ility to issue a au(it re*ort a**ro*riate to the circu$sta ces' 0A)A ;;<'>G+ ;;<';A+ A<<'G1 For a i itial au(it i !ol!i , cha ,e of au(itor+ has the au(itor co$*lete( a ( (ocu$e te( ethical co$$u icatio s "ith the *re!ious au(itorF 0A)A A<<'A>1 For a i itial au(it+ has the au(itor o%tai e( sufficie t a**ro*riate e!i(e ce o o*e i , %ala ces+ such as fro$ re!ie" of *re!ious au(itorEs "ork*a*ers 0e, e!i(e ce a%out *rior *erio(s a ( i ter al co trols1+ or au(iti , o*e i , %ala ces (irectly+ or -ualifie( the au(it re*ortF 0A)A A<<'A>1 For a recurri , e ,a,e$e t+ has the au(itor (ocu$e te( the (ecisio to co ti ue+ a ( co si(ere( the ee( to re!ise the ter$s of e ,a,e$e tF 0)QC ;J+ A)A ;><'>J+ ;;<'>=1 If the terms of engagement have been changed in the period reviewed complete supplementary !uestions at section "#$

>';

>'A

>'B

>'C

>'D

Is there a y e!i(e ce that the e ,a,e$e t *art er has i for$atio that+ if recei!e( earlier+ "oul( ha!e cause( the fir$ to (ecli e the e ,a,e$e tF If so+ has a**ro*riate actio %ee take F 0)QC AB+ A)A ;;<';;1 0/ TERMS ,- ENGAGEMENT ;'> Does the file sho" the au(itor recor(e( the a,ree( ter$s of e ,a,e$e t a ( for"ar(e( the$ to the clie tF 0A)A ;><'C+ A)A A<<'G1 If the e ,a,e$e t is re-uire( %y le,islatio + are the ter$s at least those re-uire( %y the le,islatio F 0A)A ;><'C+ ;><'><1 Is the e ,a,e$e t a re!ie"+ *erfor$a ce re!ie" or a,ree(8 u*o *roce(ures e ,a,e$e tF

;'; ;'A

If yes complete relevant supplementary !uestions at sections "%&"'$

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;'B

Do the ter$s for a au(it of a fi a cial re*ort clearly i(e tify the a**lica%le re*orti , fra$e"ork 0e, ,e eral *ur*ose @ s*ecial *ur*ose @ otherF1 0A)A ;><'>=1

Is it clear fro$ (ocu$e tatio that the clie t acce*ts res*o si%ility for the selectio of the fra$e"orkF 0&ro ou ce$e t A+ A)A ;<<'C1 %/ INDE ENDENCE A'> A'; Is the e ,a,e$e t tea$ i(e tifie( i the "ork*a*ersF 0A)A ;;<'C1 Is there a y e!i(e ce of threats to i (e*e (e ce "hich "ere clearly ot i si, ifica tF EIa$*les i clu(e: *ro!isio of o 8assura ce ser!ices to the clie tH lo , associatio of se ior e ,a,e$e t *erso el "ith the clie tH clie t fees %ei , a si, ifica t *ro*ortio of total fir$ feesH close %usi ess+ fa$ily or *erso al relatio shi*s "ith the clie t+ its (irectors+ o" ers or other key *erso elH au(it fir$ *erso el or their relate( *arties ser!i , as a (irector or officer of the clie tH for$er *erso el of the au(it fir$ e$*loye( %y the clie t+ or !ice8!ersaH a ( fi a cial i terests i + or loa s or ,uara tees to or fro$+ the clie t' 0&ro ou ce$e t >';G<1 If the fir$ has *ro!i(e( a y fi a cial state$e t *re*aratio or %ookkee*i , ser!ices to the clie t+ ho" "as the self8re!ie" threat re(uce( to a acce*ta%le le!elF 0&ro ou ce$e t > ;G<'>==8>=G1 Is there e!i(e ce that e!aluatio of a y threats to i (e*e (e ce: 0a1 has %ee %ase( o rele!a t i for$atio fro$ the fir$ @ et"ork fir$H 0%1 has co si(ere( i(e tifie( %reaches 0if a y1 of the fir$Es i (e*e (e ce *olicies a ( *roce(uresH 0c1 has %ee follo"e( %y a**ro*riate actio s to eli$i ate the threats or re(uce the$ to a acce*ta%le le!el+ or *ro$*tly re*orte( %y the e ,a,e$e t *art er to the fir$H a ( 0(1 has a (ocu$e te( co clusio F 0A)A ;;<'>C0a180c11 If the au(it is co (ucte( u (er &art ;M'A of the Cor*oratio s Act ;<<>+ ha!e all rele!a t *erso el (ocu$e te( their i (e*e (e ce o the au(it file a ( has the au(itor for"ar(e( a co$*lyi , i (e*e (e ce (eclaratio to those char,e( "ith ,o!er a ceF 0A)A ;D<';<1 LANNING AND INTERNAL C,NTR,LS Is there a (ocu$e te( au(it *la sho"i , ho" "ork "ill %e *erfor$e( effecti!ely a ( so as to re(uce au(it risk to a acce*ta%le le!elF 0A)A A<<'C+ A<<'>;+ A<<'>A+ A<<'>J+ A<<';=1 Di( the *la : i(e tify those char,e( "ith ,o!er a ce a ( to "ho$ ,o!er a ce $atters are to %e re*orte( 0A)A ;D<'G1 (ocu$e t the au(itorEs u (ersta (i , of the %usi essH 0A)A A>C'C1 i(e tify s*ecifically a**lica%le le,islatio that $ay ha!e a $aterial effect o the fi a cial re*ortF (ocu$e t the i ter al co trol e !iro $e t a ( structure+ i clu(i , IT co trols a ( co trols o!er fi a cial re*orti , 0A)A A>C'C;+ A>C'=G+ A>C'JG+ A>C'GC+ A>C'><A+ A>C'><C+ A>C'>>A1

A'A

A'B

A'C

1/ B'>

B';

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sho" ho" the au(it tea$ "ill %e (irecte(+ su*er!ise( a ( their "ork re!ie"e( 0A)A A<<';A1 assess the risk of $aterial $isstate$e t at %oth fi a cial re*ort le!el a ( assertio le!el for classes of tra sactio s+ accou t %ala ces a ( (isclosures+ i clu(i , $isstate$e t (ue to frau( 0A)A ;B<'D+ ;B<'C;+ ;B<'D>+ A>C'>>=+ A>C'>BA0c11 sho" the o!erall au(it res*o ses to a((ress i(e tifie( risks 0A)A AA<'D+ AA<'J+ AA<'>;1H a ( recor( (iscussio of the *la "ith the clie t+ i clu(i , a y au(it co$$itteeF B'A Di( *la i , i clu(e e -uiries of $a a,e$e t a%out their *rocesses a ( co se-ue t assess$e ts of risk of $aterial fi a cial $isstate$e t+ i clu(i , (ue to frau(F 0A)A ;B<'AJ1 4as the au(itor (ocu$e te( a u (ersta (i , of ho" those char,e( "ith ,o!er a ce eIercise o!ersi,ht of $a a,e$e tEs *rocesses for i(e tifyi , a ( res*o (i , to the risks of frau( i the e tity a ( the i ter al co trol that $a a,e$e t has esta%lishe( to $iti,ate these risksF 0A)A ;B<'B=1' Di( the *la + or au(it *ro,ra$ li ke( to the *la + (escri%e the ature+ ti$i , a ( eIte t of *la e( further au(it *roce(ures at the assertio le!el for each $aterial class of tra sactio s+ accou t %ala ce a ( (isclosure+ reflecti , the au(itorEs (ecisio "hether to test the o*erati , effecti!e ess of co trolsF 0A)A A<<';<+ A)A AA<1 Di( the $e$%er (eter$i e a ( (ocu$e t $ateriality: %y $aki , a *reli$i ary $ateriality assess$e t 0A)A A>C'>;1H co si(eri , -ua titati!e a ( -ualitati!e factors 0A)A A;<';>1H re!ie"i , the a**ro*riate ess of $ateriality le!els at the co clusio of the au(itH a ( assessi , "hether u correcte( $isstate$e ts are $aterial i (i!i(ually or i a,,re,ateF 0A)A A<<'>A+ A;<'C+ A;<'G+ A;<';=1 4as the au(itor o%tai e( a u (ersta (i , of the selectio a ( a**licatio of accou ti , *olicies a ( co si(ere( "hether they are: a**ro*riate for the %usi ess @ e tityH co siste t "ith the a**lica%le fi a cial re*orti , fra$e"orkH a ( co siste t "ith *olicies use( i the rele!a t i (ustryF 0A)A A>C'AD1 Were au(it *roce(ures 0i clu(i , i s*ecti , corres*o (e ce "ith rele!a t lice si , or re,ulatory authorities1 i(e tifie( that "oul( hel* i(e tify i sta ces of o 8co$*lia ce "ith the i(e tifie( la"s a ( re,ulatio s+ a ( "ere they *erfor$e(F 0A)A ;C<';A1

B'B

B'C

B'D

B'=

B'J

B'G

Di( the au(itor (ocu$e t "hether a y u*(ate or cha ,e to the o!erall au(it strate,y a ( the au(it *la "as ecessary (uri , the course of the au(it+ a ( if so+ the (etailsF 0A)A A<<';>+ A<<';=1 2/ 3,RKING A ERS C'> Are the "orki , *a*ers sufficie tly co$*lete a ( (etaile( to %e u (erstoo( %y a eI*erie ce( au(itor "ith o *rior k o"le(,e of the e ,a,e$e tF 0A)A ;A<'>>1

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C';

Do the "ork*a*ers i(e tify: a**ro*riate cross8refere ces a ( i (eIi ,+ i clu(i , refere ces that li k the au(it file to the fi al fi a cial state$e tsH the $ea i , of au(it ticks a ( $arks characteristics of s*ecific ite$s or $atters that "ere teste( 0e',' i !oice u$%ers+ sa$*le sources+ (ates a ( a$es of clie t *erso el i ter!ie"e(1F 0A)A ;A<'>B1 ature a ( outco$es of (iscussio s "ith $a a,e$e t+ staff+ those char,e( "ith ,o!er a ce+ *rofessio al a(!isors etcF 0A)A ;A<'>J1 Do the "ork*a*ers i(e tify: "ho *erfor$e( the "ork a ( o "hat (ateH "ho re!ie"e( the "ork a ( "he H a ( the eIte t of re!ie"F 0A)A ;A<';D1 (()* (ot every wor+ paper has to show evidence of review) Do the "ork*a*ers reflect a attitu(e of *rofessio al sce*ticis$F 0A)A ;<<';>+ ;B<';=+ ;C<'C+ ;C<'>J+ ;C<';=1F Recor( the for$at a ( locatio of the "ork*a*ers+ e',': *hysical file0s1 i fire safe ca%i ets electro ic files o et"ork archi!e( electro ic files etc

C'A

C'B C'C

C'D 4as a rete tio *erio( %ee i(e tifie( for this e ,a,e$e tEs "ork*a*ers co siste t "ith the au(itorEs *olicies a ( *roce(ures for $ai tai i , co fi(e tiality+ safe custo(y+ i te,rity+ accessi%ility+ a ( retrie!a%ility of the (ocu$e tatio F Do *rior year "ork*a*ers a**ear to ha!e %ee ke*t for the rete tio *erio(F 0A)A ;A<'A>+ ;A<'A=+ )QC GB1 4/ AUDIT E+IDENCE 5 GENERAL D'> 4as the au(itor (ocu$e te( the res*o se to the assesse( risks of $aterial $isstate$e t %y i clu(i , the results of the au(it *roce(ures (esi, e( to a((ress the$+ i clu(i , the risk of $a a,e$e t o!erri(e of co trolsF 0A)A ;B<+>>=0%11' 4as the au(itor $a(e e -uiries of $a a,e$e t+ i ter al au(it+ those char,e( "ith ,o!er a ce of the e tity+ a ( others "ithi the e tity as a**ro*riate+ to (eter$i e "hether they k o" of a y actual or sus*ecte( frau( affecti , the e tityF 0A)A ;B<'B;+ ;B<'C<1 4as the au(itor: teste( the a**ro*riate ess of ,e eral le(,er /our al e tries a ( other a(/ust$e ts $a(e i the *re*aratio of the fi a cial re*ortH re!ie"e( accou ti , esti$ates for %iases that coul( result i $aterial $isstate$e t (ue to frau(H a ( u (erstoo( the %usi ess ratio ale of si, ifica t tra sactio s that are outsi(e the or$al course of %usi ess or are other"ise u usualF 0A)A ;B<'J<1 Was sufficie t a**ro*riate au(it e!i(e ce o%tai e( to co fir$ $aterial recei!a%les %ala cesF If (o e %y other tha (irect co fir$atio + "as this /ustifie( i "riti ,F 0A)A C<C'C1 If i !e tory "as $aterial+ (i( the au(itor o%ser!e the stock takeF If ot+ "as the reaso (ocu$e te( a ( a(e-uate alter ati!e *roce(ures a**lie(F 0A)A C<>'>>+ >A+ >B+ >G1

D';

D'A

D'B

D'C

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D'D

Was a %a k au(it certificate o%tai e( %efore the au(it re*ort "as si, e(F If ot+ "as sufficie t a**ro*riate au(it e!i(e ce i relatio to %a k %ala ces a ( char,es o%tai e(F 0A2) ><<;'<A1 Was sufficie t a**ro*riate au(it e!i(e ce o%tai e( re,ar(i , liti,atio a ( clai$s a ( the i$*act of theseF 0A)A C<J'C+ >>+ AA+ AC1 4as the au(itor (ocu$e te( au(it *roce(ures that co si(er all $aterial e!e ts that $ay ha!e occurre( %et"ee re*orti , (ate a ( the (ate of issue of the au(it re*ortF 0A)A CD<'J+ >;1 Di( the au(itor %eco$e a"are of *ossi%le o 8co$*lia ce "ith a la" or re,ulatio "ith $aterial fi a cial re*ort i$*actF 4as a**ro*riate au(it e!i(e ce %ee o%tai e(+ fi (i ,s (ocu$e te( a ( (iscusse( "ith $a a,e$e tF 0A)A ;C<';B+ ;C<'AB1 If there is such possible non&compliance complete supplementary !uestions in Section ",

D'D

D'=

D'J

D'G

Di( the au(itor o%tai sufficie t a**ro*riate e!i(e ce that fair !alue $easure$e ts a ( (isclosures are i accor(a ce "ith the e tityEs a**lica%le fi a cial re*orti , fra$e"orkF 0A)A CBC'=1 Was sufficie t a**ro*riate au(it e!i(e ce o%tai e( re,ar(i , the i(e tificatio of relate( *arties a ( the effect of relate( *arty tra sactio s+ i clu(i , lists su**lie( %y the clie tF 0A)A CC<'C+ =+ >J1 If the "ork of a other eIter al *rofessio al is use(+ for eIa$*le a actuary+ a other au(itor or a i ter al au(itor+ ca the $e$%er (e$o strate that the sco*e a ( co te t of the "ork is a(e-uate to %e relie( u*o F 0A)A D<<'>B+ D;<'>=+ >G+ D><';<1 4as there %ee co sultatio "ith a yo e outsi(e the au(it tea$F If so: 0a1 ha!e the co clusio s reache( %ee (ocu$e te( a ( a,ree( %y the co sulte( *artyF 0A)A ;;<'AB0c11H a ( 0%1 has the *art er (eter$i e( that the co clusio s fro$ the co sultatio ha!e %ee i$*le$e te(F 0A)A ;;<'AB0(11 Were "ritte re*rese tatio s o%tai e( fro$ $a a,e$e t: 0a1 o s*ecific $aterial $atters "he other sufficie t a**ro*riate au(it e!i(e ce coul( ot reaso a%ly %e eI*ecte( to eIistH 0A)A CJ<'<G1 0%1 ack o"le(,i , its res*o si%ilities for the (esi, a ( i$*le$e tatio of i ter al co trol to *re!e t a ( (etect frau( 0A)A CJ<'>;1H 0c1 (isclosi , $a a,e$e tEs frau( risk assess$e t results a ( its k o"le(,e of sus*ecte(+ alle,e( or k o" frau(H 0A)A ;B<'GD1 0(1 (isclosi , all k o" actual or *ossi%le o 8co$*lia ce "ith la"s a ( re,ulatio s "hose effects shall %e co si(ere( "he *re*ari , the fi a cial re*ortH 0A)A ;C<';G1 0e1 that u correcte( $isstate$e ts ha!e %ee %rou,ht to their atte tio %y the au(itor a ( $a a,e$e t co si(er the$ to %e i$$aterial i (i!i(ually a ( i a,,re,ateF 0A)A A;<'AC+ CJ<'>;1 4as a su$$ary of those $isstate$e ts %ee recei!e( i "riti , as *art of those re*rese tatio sF

D'><

D'>>

D'>;

D'>A

6/ AUDIT E+IDENCE 5AREA RE+IE3ED IN DETAIL ='> #a$e o e area critical to the au(it for "hich you "ill re!ie" the relate( *la i ,+ *erfor$a ce a ( re*orti , "ork*a*ers'

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=';

4as the au(itor (ocu$e te(: the risks i(e tifie( that coul( lea( to $aterial $isstate$e t (ue to frau( or errorH a (escri*tio of the accou ti , syste$ a ( e!aluatio of the relate( i ter al co trols a ( co trol acti!itiesH a ( "hether the co trols ha!e %ee i$*le$e te(F 0A)A ;B<'D>+ A>C'>A;+ A>C'>AC+ A>C'>BA0(11 4as the au(itor i(e tifie( "hich i(e tifie( risks are si, ifica t a ( therefore re-uire s*ecial au(it co si(eratio F 0A)A A>C'>;D+ A>C'>A;1

='A ='B ='C ='D ='=

Were the ty*e a ( eIte t of au(it *roce(ures *erfor$e( co siste t "ith this e!aluatio F Was the -uality of e!i(e ce o%tai e( a**ro*riate to $eet the au(it o%/ecti!esF Were i(e tifie( co$*uter syste$s a(e-uately teste(+ i clu(i , %y IT eI*erts if re-uire(F Do the "ork*a*ers a(e-uately (ocu$e t the "ork u (ertake a ( the co clusio s reache(F

Were a y issues i(e tifie( i cor*orate( i to au(it assess$e ts a ( a(e-uately a((resse( 0e, %y a((itio al testi ,+ re*orti , to $a a,e$e t+ a,,re,ate( i to u correcte( $isstate$e ts1F1 7/ RE+IE3 ,- ENGAGEMENT AND C,NCLUSI,NS J'> Does the e ,a,e$e t *art er a**ear to ha!e take res*o si%ility for the (irectio + su*er!isio a ( *erfor$a ce of the au(itF 0A)A ;;<';C1 4a!e au(it tea$ $e$%ers (iscusse( the susce*ti%ility of the fi a cial re*ort to $aterial $isstate$e t+ i(e tifyi , a ( assessi , risks (ue to error or frau( at %oth the fi a cial state$e t le!el a ( the assertio le!elF Are si, ifica t (ecisio s reache( (ocu$e te(F 0A)A ;B<'A<+ ;B<'>>D+ A>C';<+ A>C'>BA0a11 If that (iscussio (i( ot i clu(e all tea$ $e$%ers+ has the e ,a,e$e t *art er co si(ere( "hich $atters shoul( %e co$$u icate( to the other au(it tea$ $e$%ersF 0A)A ;B<'A;1 J'A Is there a y e!i(e ce of a (iffere ce of o*i io "ithi the e ,a,e$e t tea$+ "ith those co sulte( or %et"ee the e ,a,e$e t *art er a ( e ,a,e$e t -uality co trol re!ie"erF If so+ ha!e the fir$Es *olicy a ( *roce(ures for resol!i , (iffere ces %ee follo"e(F 0A)A ;;<'GB+ ;;<'AJ1 Were a alytical *roce(ures a**lie( "he co clu(i , "hether the fi a cial re*ort as a "hole is co siste t "ith the $e$%erEs k o"le(,e of the %usi ess 0A)A C;<';C1+ a ( a((ress a y si, ifica t fluctuatio s i(e tifie(F 0A)A C;<';=1 Di( the $e$%er co si(er "hether these a alytical *roce(ures i (icate a *re!iously u reco, ise( risk of $aterial $isstate$e t (ue to frau(F 0A)A ;B<'JG1 Were i(e tifie( $isstate$e ts co si(ere( as i (icators of a frau(F If there "as such i (icatio + "ere the i$*licatio s for other as*ects of the au(it co si(ere(+ *articularly the relia%ility of $a a,e$e t re*rese tatio sF 0A)A ;B<'G>+ CJ<'>D1 If there has %ee frau( or fi a cial re*ort $isstate$e t+ has the au(itor a(e-uately co si(ere( a ( (ocu$e te( the i$*licatio s for the au(it+ i clu(i , "ith(ra"al fro$ the e ,a,e$e t+ "here allo"e(F 0A)A ;B<'>>>1 Di( the $e$%er co clu(e o the sol!e cy of the clie t a ( the a**ro*riate ess of the ,oi , co cer %asisF 0A)A C=<'C+ AG1
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J';

J'B

J'C

J'D

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J'J

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Re!ie"er?s Co$$e ts Docu$e t@Recor(s )ee

File > File ; File A File B File C File D

J'G

If the au(itor has co clu(e( that the *resu$*tio of risk of $aterial $isstate$e t (ue to frau( relate( to re!e ue reco, itio is ot a**lica%le to the circu$sta ces of the e ,a,e$e t+ ha!e the reaso s for that co clusio %ee (ocu$e te(F 0A)A ;B<'>>G1 -g trust account audit If the file recor(s u correcte( $isstate$e ts fou ( (uri , the au(it+ has the au(itor: a,,re,ate( the$ "ith a y re*orte( %y $a a,e$e t to see if the o!erall effect "as $aterial 0A)A A;<';=1 i for$e( $a a,e$e t of those $isstate$e ts other tha clearly tri!ial o es+ seeki , correctio %efore e!aluati , the effect of the re$ai i , u correcte( $isstate$e ts 0A)A A;<';B1 i for$e( those char,e( "ith ,o!er a ce of the i (i!i(ual a ( a,,re,ate a$ou ts (eter$i e( %y $a a,e$e t to %e i$$aterial to the fi a cial re*ort as a "holeF 0A)A ;D<'>=1 Is there a y i for$atio + co tra(icti , or i co siste t "ith the au(itorEs fi al co clusio + for "hich the au(itor has ot (ocu$e te( ho" the co tra(ictio or i co siste cy has %ee a((resse(F 0A)A ;A<';<1 4as the e ,a,e$e t *art er co clu(e( "hether the au(it tea$ co$*lie( "ith ethical re-uire$e ts relati , to au(it e ,a,e$e ts 0A)A ;;<'>>1F 4as the e ,a,e$e t *art er co clu(e( that sufficie t a**ro*riate au(it e!i(e ce has %ee o%tai e( to su**ort the co clusio s reache( a ( the au(it re*ortF 0A)A ;;<'A<1 What "as the (ate the au(it o*i io "as for$e(F Does the sufficie t au(it e!i(e ce a**ear to ha!e %ee o%tai e( %efore the au(it re*ort "as si, e(F 0A)A =<<'CB1 Does the fi al file a**ear to ha!e %ee asse$%le( o a ti$ely %asisF (ordinarily within ./ days after issue of the audit report) Does there a**ear to ha!e %ee a y $o(ificatio to "ork*a*ers after the asse$%ly of the fi al au(it file+ a ( if so+ ha!e the (etails a ( effect+ if a y+ o the o*i io + %ee (ocu$e te(F 0A)A ;A<'C+ ;A<';J+ ;A<'AB+ ;A<'AC1

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J'>B

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O!erall+ is there a sufficie t a ( a**ro*riate recor( of the %asis of the au(it re*ortH a ( e!i(e ce that the au(it "as *erfor$e( i accor(a ce "ith Au(iti , )ta (ar(s a ( a**lica%le le,al a ( re,ulatory re-uire$e tsF 0A)A ;A<'C1 8/ AUDIT RE ,RT G'> Recor( the ty*e of au(it o*i io the $e$%er issue(: 8 u $o(ifie( 0.M1 8 e$*hasis of $atter 0EOM1 K -ualifie( LeIce*t forM 0E1 o*i io 0D1 G'; G'A 8 a(!erse 0A1 8 (isclai$er of

Does that ty*e of o*i io see$ a**ro*riate ,i!e the e!i(e ce o%tai e(F Were there a y si, ifica t $atters that $i,ht result i a e$*hasis of $atter o*i io 0e, ,oi , co cer or other si, ifica t u certai ty1F If so+ (i( the au(itor a(e-uately (ocu$e t the co clusio lea(i , to the fi al re*ortF 0A)A =<>'>>1

Re!ie" of Au(it E ,a,e$e ts A*ril ;<<=

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Re!ie"er?s Co$$e ts Docu$e t@Recor(s )ee

File > File ; File A File B File C File D

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4as a $o(ifie( o*i io %ee eI*resse( if those char,e( "ith ,o!er a ce refuse( to a(/ust the fi a cial re*ort for $aterial $isstate$e ts a ( the results of eIte (e( au(it *roce(ures (o ot e a%le the au(itor to co clu(e that the a,,re,ate of u correcte( $isstate$e ts is ot $aterialF 0A)A A;<'AB1 Is the au(it re*ort for$at co$*lia t+ a ( co tai : the title+ i clu(i , the "or( Ni (e*e (e tO 0A)A =<<';A1 the a((ressee 0A)A =<<';C1 i tro(uctory *ara,ra*h+ i clu(i , i(e tificatio of the e tity+ i(e tificatio of the fi a cial state$e ts a ( (eclaratio s au(ite(+ a ( (ate a ( *erio( co!ere( %y the fi a cial re*ort 0A)A =<<';=1 state$e t a%out the res*o si%ility of those char,e( "ith ,o!er a ce for the fi a cial re*ort 0A)A =<<'AA1 state$e t that the au(itorEs res*o si%ility is to eI*ress a o*i io o the fi a cial re*ort %ase( o the au(it+ a ( (escri*tio of the au(it 0A)A =<<'A=+ =<<'AG+ =<<'B;+ =<<'BA1 a sectio a((ressi , a y e$*hasis of $atter acco$*a yi , the o*i io 0A)A =<>'G+ >>+ >C+ >=+ >G1 a o*i io i a *ara,ra*h hea(e( Au(itorEs O*i io + Qualifie( Au(itorEs O*i io + Disclai$er of Au(it O*i io or A(!erse Au(it O*i io 0A)A =<<'BC+ A)A =<>';;8;B1 a y au(itorEs o*i io o other $atters 0if a**lica%le1 A)A =<<'C>1 au(itorEs si, ature 0 a$e of au(it fir$+ au(it co$*a y or *erso al a$e+ co siste t "ith the e ,a,e$e t1 0A)A =<<'CA1 (ate of si, i , the au(it re*ort 0A)A =<<'CB1 au(itorEs *ractice locatio 0a((ress1 0A)A =<<'CJ1 Is there e!i(e ce o file that the clie t has si, e( the fi a cial re*ort %efore the au(itor has si, e( the au(it re*ortF 0A)A =<<'CB+ A)A CJ<'=1 Does the file (ocu$e t the assess$e t of "hether+ i all $aterial res*ects+ the fi a cial re*ort is *rese te( fairly i accor(a ce "ith Accou ti , )ta (ar(s a ( other $a (atory re*orti , re-uire$e tsF If the $e$%er co clu(es that the re*ort is ot *re*are( i accor(a ce "ith Accou ti , )ta (ar(s a ( I ter*retatio s (i( the $e$%er issue a -ualifie( au(it re*ortF 0A)A =<<'BB8BD+ A)A =<>'AB8AD1

G'C

G'D

2e eral &ur*ose Fi a cial Re*ort G'><

)*ecial &ur*ose Fi a cial Re*ort G'>> Di( the $e$%er e sure that the )&FR a ( the au(it re*ort clearly state: 0a1 that it is a s*ecial *ur*ose fi a cial re*ortH 0%1 the s*ecific *ur*ose for "hich the s*ecial *ur*ose fi a cial re*ort has %ee *re*are(H a ( 0c1 the eIte t to "hich Accou ti , )ta (ar(s a ( I ter*retatio s ha!e+ or ha!e ot+ %ee a(o*te( i its *re*aratio a ( *rese tatio ' 0&ro ou ce$e t A1 .9/ C,MMUNICATI,N 3ITH CLIENT AND THIRD ARTIES

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Re!ie"er?s Co$$e ts Docu$e t@Recor(s )ee

File > File ; File A File B File C File D

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If the au(itor has i(e tifie( a frau(+ or i for$atio that o e $ay eIist+ has the au(itor co$$u icate( this to $a a,e$e t as soo as *ractica%le+ 0A)A ;B<'GG1+ or if it i !ol!es $a a,e$e t+ e$*loyees "ith a si, ifica t role i i ter al co trol+ or others "here the frau( results i $aterial fi a cial re*ort $isstate$e t+ to those char,e( "ith ,o!er a ceF 0A)A ;B<'><>1' Is the co$$u icatio (ocu$e te(F 0A)A ;B<'>>J1 Is there e!i(e ce that the au(itor has co$$u icate( as soo as *ractica%le+ $aterial "eak esses i i ter al co trol to those char,e( "ith ,o!er a ce a ( to $a a,e$e t "ith a**ro*riate le!els of res*o si%ilityF 0A)A ;B<'><D+ A>C'>B>1 4as the au(itor co$$u icate( o a ti$ely %asis a y i(e tifie( $atters of ,o!er a ce i terest arisi , fro$ the au(it to those char,e( "ith ,o!er a ceF 0e',' i a $a a,e$e t letter1 0A)A ;D<'C+ ;D<'>C+ ;D<';;1 If the co$$u icatio s "ith those char,e( "ith ,o!er a ce "ere $a(e orally+ "as this a**ro*riate for the ature of the co$$u icatio a ( has the au(itor ke*t $i utes or file otes to recor( the co$$u icatio F 0A)A ;D<';D1 If the au(itor has co cer s that a "ritte re*ort $ay ot reach all i te (e( reci*ie ts+ has the au(itor i$*le$e te( a a**roach to $ake all rele!a t *erso s i for$e( of the co te ts of the re*ortF 0A)A ;D<';J1 4as the au(itor co si(ere( "hether to co$$u icate a,ai o $atters of ,o!er a ce i terest *re!iously co$$u icate(F 0A)A ;D<'A;1 4a!e $atters *re!iously re*orte( %ut ot correcte( %ee co si(ere( i the au(it *la F

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><'A

><'B

><'C

><'D

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If the e ,a,e$e t is a au(it re-uire( u (er the Cor*oratio s Act+ "ere a y sus*ecte( co tra!e tio s of the Act re*orte( o a ti$ely %asis i a )ectio A>> otice to A)ICF 0s' A>>+ A)IC &ractice #ote AB1

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If the au(itor has "ith(ra" fro$ a e ,a,e$e t+ has the au(itor res*o (e( to a ethical e -uiry fro$ a *ro*ose( su*erce(i , au(itorF If the clie t has (e ie( *er$issio for the au(itor to (iscuss its affairs "ith the *ro*ose( au(itor+ has the au(itor (isclose( that factF 0A)A ;C<'CD+ ;C<'CJ1 ../ RE+IE3ER:S ASSESSMENT >>'> Does the au(itor a**ear to ha!e a**lie( all esse tial *roce(ures re-uire( %y au(iti , sta (ar(sF If there are rare a ( eIce*tio al circu$sta ces that *re!e t this+ has the $e$%er *erfor$e( alter ati!e a**ro*riate *roce(ures a ( @ or (ocu$e te( the circu$sta cesF 0A)A ;<<'>C+ ;A<';A1

Re!ie" of Au(it E ,a,e$e ts A*ril ;<<=

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The Reviewer !hould now complete the following !ection! nd di!cu!! them with the "ember#!$ before le ving% #&nclude here l!o the outcome! of the review of the Self'Ev lu tion Chec(li!t unle!! you h ve lre dy included them on nother chec(li!t) eg t *) m n gement con!ulting) compil tion$ ,ut!o#"s; ositi<" &""d$a!=; >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Non?!o#*lian!"s (it) #andator' r"@uir"#"nts id"nti&i"d; >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Minor d"&i!i"n!i"s and sugg"stions &or i#*ro<"#"nt; >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> To be completed by the "ember t the conclu!ion of the review M"#$"r(s) !o##"nts; T)" a$o<" stat"#"nts ar" a tru" and &air d"s!ri*tion o& t)" r"<i"( out!o#"s >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> (Sign ture$ ++++++++++++++++++ #, te$ -R I disagr"" (it) on" or #or" o& t)" a$o<" stat"#"nts, $"!aus";>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
The Reviewer !hould now complete the Review Report #.P 4/0 1$ nd !upply copie! to the 2 tion l " n ger of "ember &ntegrity within 0 wee(! of the d te of the review%

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