Below, you'll find nine steps to perform an efficient review of an audit engagement.
- Review the firm’s planning and the engagement profiles and complete questions in Section I, "General Audit Planning Procedures" of the audit engagement checklist.
- Identify areas with the highest audit risk in column 1 of the grid in section II, "Audit Areas".
- Review the working papers for those areas and answer the working paper questions related to the identified highest risk audit areas identified in step 2.
- Reassess the identification of highest risk audit areas to be reviewed to determine if any should be added.
- Complete columns 2 through 4 of the grid in section II for the highest risk audit areas identified in step 2.
- Review the working papers for general audit procedures and complete section III, "General Audit Procedures."
- Read the auditor's report and respond to reporting and disclosure questions, by completing section IV, "Report and Financial Statements" of the engagement checklist. If applicable, complete Peer Review Program section 22,300, Financial Reporting and Disclosure Checklist, for general audit engagements.
- In section V, “Explanations of ‘No’ Answers and Other Comments,” provide explanation of “No” answers for which a Matter for Further Consideration form was not generated.
- In section VI, “Conclusions,” conclude on the engagement reviewed.