Below, you'll find nine steps to perform an efficient review of an audit engagement.
1. Review the firm’s planning and the engagement profiles and complete questions in Section I, "General Audit Planning Procedures" of the audit engagement checklist.
2. In Section II, "Audit Areas", given your industry experience, identify three accounts or audit areas of highest importance to the type of engagement. For each of the three accounts or audit areas:
a) Review the planning and risk assessment for each, consider all of the relevant assertions, and assess whether the firm came to a reasonable risk rating.
b) Complete the inherent, control risk and risk of material misstatement questions.
c) Review the working papers and answer the related working paper questions. For example, if you select Receivables, you will review the Receivables working papers and complete the Receivables section of the checklist
d) Reassess the identification of highest risk audit areas to be reviewed to determine if any should be added
3. Review the working papers for general audit procedures and complete section III, "General Audit Procedures."
4. Read the auditor's report and respond to reporting and disclosure questions, by completing section IV, "Auditors Report" of the engagement checklist, and completing Peer Review Program section 22,300, Financial Reporting and Disclosure Checklist, for general audit engagements.
5. 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.
6. In section VI, “Conclusions,” conclude on the engagement reviewed.