Performing effective (and efficient) audits - the importance of planning and materiality

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. How should an effective audit be performed under the ISAs?

  2. What should be outlined by the audit strategy for an audit engagement?

  3. Which of the following information is relevant in obtaining an understanding of the entity and its environment to identify risks of material misstatement?

  4. To understand and verify whether specific controls have been designed and operate effectively in preventing, or detecting and correcting, material misstatements the auditor should -

  5. ISA (UK and Ireland) 315 identifies five components of internal control and one of them, the control environment, can provide a foundation that determines the strength of the other components. The control environment of an entity is intended as -

  6. The audit strategy may identify the general approach to the audit, which should be -

  7. Performance materiality is a level of materiality that is -

  8. Performance materiality should be determined by -

  9. ISA 315 requires the engagement partner and key members of the audit team to take part in the audit team-planning meeting for the purpose of -

  10. How should the auditor document his/her understanding of the entity, its environment and controls and related risk assessment?