Auditing Bits in BytesT Session 5: Substantive Testing

Overview

Auditing Bits in BytesT - A Practical Break-Down of "Real World" Best Practices Applied in Highly Successful Audits is a series of eight individual sessions that guide professionals through the complete audit process from "A to Z" -- starting with Pre-Engagement Planning Activities, and going all the way through Wrap-up and Quality Control. Attempting to perform an effective and efficient audit can be intimidating and confusing, for new and experienced auditors alike. This series of eight individual segments will provide valuable tips and techniques from an experienced auditor that are needed to successfully design and perform financial statement audits in "real-life" circumstances. Extensive illustrative examples and exercises will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement.

This 2-hour session focuses on performing the substantive audit procedures outlined in the detailed audit plan. Common deficiencies in performing and documenting these further audit procedures will be discussed.

Highlights

Key Topics

• Nature, Timing & Extent of Substantive Testing - How to gather sufficient and appropriate audit evidence to support the audit opinion
• Substantive Analytic Review - Typical deficiencies in designing, documenting and leveraging audit evidence gathered through these further audit procedures
• Confirmations - Mistakes made in designing and evaluating the results of third-party confirmations as a form of persuasive audit evidence
• Sampling Considerations - Common misunderstandings related to designing, performing and concluding on tests of details
• Extensive illustrative examples will be used to reinforce a practical understanding of the most critical principles and standards that support a high-quality, insightful, and profitable engagement

Prerequisites

None

Designed For

Who Will Benefit

• Anyone who is new to auditing or desires a refresher in how to perform effective and efficient financial statement audits for non-issuers in accordance with professional and regulatory standards.

Objectives

Learning Outcomes

• Identify steps to design and perform substantive audit procedures comprising the detailed audit plan
• Identify common deficiencies in performing and documenting further audit procedures, including both tests of details and substantive analytic procedures
• Recognize how to comply with specific requirements for extended tests of details performed to address higher risk of material misstatement, including external confirmation and sampling