Managing Individual Engagements (40–50%)
2.1 Plan Engagements
In this section, topics such as audit process, audit planning, analytical reviews, planning materiality, determining audit objectives and scope, audit work program, and planning the audit work are discussed.
(a) Audit Process
The process of conducting an audit consists of the review of a series of activities and the following of a series of procedures. A structured methodology, consisting of audit phases or stages, can be used during the audit process to ensure quality and to ensure that all required activities are accomplished—starting from the beginning of an audit to the completion of the audit. Each phase has defined tasks to be completed. Five such phases include (1) preliminary survey, (2) audit program, (3) fieldwork, (4) reporting, and (5) monitoring and follow-up. The audit report is the end product of the audit process. The audit process described is linked to three overall audit areas: preaudit, during the audit, and postaudit (see Exhibit 2.1).
(i) Preliminary Survey
The preliminary survey is the first step in the audit process, and its purpose is familiarization, which is essential to a well-balanced and well-conducted ...