Case 1- Preliminary Audit Conference

With the suggestions given by the client, Ms. Amog should only follow to the extent of

Case 2- Comprehensive Audit Planning Case (AICPA)

The necessary preparation and planning for the 2016 audit of the Company includes the sources of
information, the type of information, the preliminary plans and preparations for the field work and the
actions needed to take relative to the staff assigned to the engagement.

The sources of information in preparing the audit are the working papers of previous years that include
permanent files for planning the materiality. This also includes the audit adjustments and difficulties
dealt with throughout the audit, the actual time and audit budget on numerous audit parts and the
matters of ongoing audit personnel and loan agreements. Constraints and the engagement letter that
affect the audit of the current year as well as the preceding reports, partners and managerial
memorandums evaluating the vital audit areas is important information for the audit. Amount
valuations of allowance account and loan loss reserves are just as significant. This might include the aims
and objectives identified in strategic plans; any key procedures or policies; organization charts; financial
information such as budgets risk registers, controls and sample management reports. If the area has
been audited in the past, it is worth reviewing the last audit report and the progress of past
recommendations.

Preliminary plans and preparations that the auditor should make for the field work is to inform the
designated representative who is to conduct an interview to confirm the organization chart if it is still
accurate and confirm the appointments with the employees in order to conduct an internal control
review which includes the revenue and payroll with documented interview that provide valuable
information and insight. This may make the process more efficient and can even detect areas of concern
that weren’t previously identified.

It is useful to distribute a copy of the scoping letter to key staff so that they have an idea of the type of
work to be undertaken. It also helps them identify the sort of records and information that they need to
have available when the auditors come.

Throughout the engagement, the auditor should remain alert through observation and making inquiries
as necessary for evidence of compliance with relevant ethical requirements by the staff. If the assigned
staffs have not complied with relevant ethical requirements, the auditor together with those of
authority in the firm shall determine the appropriate actions to ensure that the audits are carried out in
compliance with the policies, professional standards and quality control. The delegation of tasks should
be done with the emphasis of accountability and responsibility, so as to ensure that the performance is
sufficient and the completion of work is satisfactory. The auditor should also proactively assess the
team’s capabilities and performance during the whole of the audit and take the appropriate actions
when necessary.