Exercise 1 - jb nagar cpe study circle of wirc of icai

Audit ChecklistReview Comments – First RoundMode of Delivery - CoachingGeneral1. We appreciate the efforts made for sources of material.2. Where is SA XX Framework for Control ?3. Where is SA XX Framework for Assertions arising from Financial Statements ?4. I think work of experts is required for XX , ensure Compliance with SA XX5. What questions you will include in your correspondence while ensuring compliance withrelying on the work of internal Auditor SA XX and another auditor SA XX ?6. Have you assessed analytical review in line with your knowledge of business therebyresponding to SA XX – Knowledge of business, and SA XX, Analytical Review7. Have you considered steps in relation to Fraud within expectation arising from SA XX.8. Have you met the disclosure requirement of Schedule VI?9. etc…….Technical - (Read Bare Text After Developing Program)10. NRV needs to be calculated as at balance sheet date. Subsequent sale price may be usedbut is not conclusive.11. Abnormal cost are eliminated but not abnormal gains,12. etc…..Client Specific (Settled in past)13. Report of Valuer (expert) need to be on the file14. Raw Material Empties are not part of Stock15. Stock given on loans to be included as part of loans and advances.16. Fill your Responses to audit checklist proactively for Client X for the year ending March31, 2007.17. Depict the Case Study (one time effort for one client)18. etc…..Immediate Action Point before Going Forward1. Interpret Seven Assertion of Audit Evidence and three characteristics of Control Cyclefrom SA XX (Time allotted 4 hours)2. Interpret Risk Environment from SA XX3. To train yourself for COSO Framework 1973 after understanding SA XX – Time allottedfor training 12 hours per day for 4 days continuously.4. etc….Remember Cardinal Lessons to Avoid Frustration During Building – Up Documentationfor First Time Use Office Hour (for Content collection, reading) Apply for following period and do not dig up last year files as to what shouldhave been done Manage one stop meeting with client Inquiry may done in first half of the day and in second half just sit ondocumenting it Use MS tools for Flow-charts (very easy to use) Finish it section by section.21 Rakesh Agarwal