TOP AUDITING ISSUES FOR 2013 - CCH

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TOP AUDITING ISSUES FOR 2013 CPE COURSE
Auditors should report their findings using these elements. They should
place their findings in perspective by describing the nature and extent of the
issues reported, and the extent of audit work performed. When appropriate,
auditors should relate the instances identified to the population or number
of cases examined, and quantify the results in monetary or other form.
OBSERVATION
In 2007 the President’s Council on Integrity and Efficiency released its Report on National
Single Audit Sampling Project. This report noted that missing audit finding information
was a common deficiency among the audits that it selected for sampling. It stated that
one or more of the required elements were not included in many of the findings. Although
this report applies specifically to audits conducted under the Single Audit Act, it signals to
the profession that federal regulators expect to see each of the above elements written
explicitly into each audit finding.
STUDY QUESTION
4. All of the following are unconditional requirements except:
a. Auditors must determine whether there is enough appropriate evidence to
address audit objectives.
b. Auditors must obtain sufficient, appropriate evidence to provide a reasonable
basis for their conclusions.
c. Audit staff must be properly supervised. Supervisors or those designated to
supervise auditors must properly supervise audit staff.
d. Auditors must prepare a written audit plan for each audit.
Audit Documentation
This section creates the unconditional requirement that auditors must prepare
audit documentation related to planning, conducting and reporting for each
audit. Auditors should also observe the following presumptively mandatory
requirements:
Prepare audit documentation in sufficient detail to enable an experienced
auditor having no previous connection with the audit to understand the:
Nature, timing, extent and results of audit procedures performed
Audit evidence obtained and its source
Conclusions reached
Evidence supporting significant audit judgments and conclusions
Prepare audit documentation that contains evidence that supports the
findings, conclusions, and recommendations prior to report issuance
Design the form and content of the audit documentation to meet the
particular audit’s circumstances