文档介绍：CHAPTER 6
PLANNING THE AUDIT;
DESIGNING AUDIT PROGRAMS
OBJECTIVES:
1.   How to analysis the possibility of a new client acceptance?
2.  What can we do when facing a new client?
3.  What details can we consider after accepting a new client?
4.  How to prepare an audit planning?
5.  In designing the audit programs, what should be emphasized on?
6. Describing the steps in the audit process
TERMS:
1.       analytical procedures
2.       mittee
3.       audit plan
4.       audit program
5.       audit risk
6.       business risk of the auditors
7.       control risk
8. detection risk
9. engagement letter
10. interim period
11.      
12.       management assertions
13.       predecessor auditors
14.       shopping for principles
15.       substantive approach
16.       substantive tests
17.       essor auditors
18.       systems approach
19.       time budget
20. transaction cycle
How does the audit planning developed?
6-1 CLIENT ACCEPTANCE
What can we do when facing the new clients?
1.   Thinking
2. Communicating with predecessor
auditors
3.   Communicating with others
4. Other considerations
6-2 OBTAINING THE ENGAGEMENT
1.       mittees
Composed of three to five outside directors-----neither officers nor employers of pany
Focusing on :
a.   weaknesses of internal control
b.   disagreements with management according to accounting principles
c. indications of management fraud or other illegal acts by corporate officers
2.    Fee Arrangement
How pulate the fee of audit?
3.   Engagement Letters
It is very important for the CPA and the Clients
6-3 AUDIT PLANNING
an understanding of the client’ business
(1) having a knowledge of the industry in which the client operates
a.  evaluating the overall attractiveness of the industry
b.    considering characteristics of the industry
c. analyzing the client’s operations
(2)    sources of information
a . relative data
b. informal discussions
(3)    electronic r