Você está na página 1de 126

PROCEDURES FOR QUALITY AUDIT

Student Edition - Authored to auditing standards effective in 2010





Not for audit use







Procedures for QuaIity Audit 2010
!"#$%&$' )*+,-.%&+/
#
Enter client name and period end:
CIient Name: Insert CIient Name on Frontsheet
Period Ended: 31/12/10
Previous Period Ended: 31/12/09
Currency Of FinanciaI Statements: C
Go to ndex
Guide to Excel version
ntroduction and approach
End User Licence Agreement
Copyright Chartered Accountants Ireland. All rights reserved
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Procedures for QuaIity Audit 2010
Insert Client Name on Frontsheet
31 December 2010 !"#$%&$' )*+,-.%&+/
Index Use hyperlinks or tabs to navigate the work programme Tab
Frontsheet Frontsheet
Guide to the Excel Version ndex
ntroduction and disclaimer ndex
End User Licence Agreement EULA
Signed Documents
Copies of Signed Financial Statements A1.1 and A1.2
Signed Letter of Representation A2
Audit CompIetion
Matters Forward Checklist A3
ndependent Partner/Hot File (ssues) Review A4
Audit Completion A5.1
File Completion Checklist A5.2
Significant matters A6
Review of Communications to Those Charged with Governance A7
Letter of Representation Review A8
Summary of Errors Schedule A9.1
Summary of Errors - Work programme A9.2
Review of Financial Statements and Final Analytical Review A10.1
Common Omissions - Republic of reland A10.2a
Common Omissions - Northern reland A10.2b
Financial Statements Call-Over Checklist A10.3
Post Balance Sheet Events A11
Going Concern A12.1
Going Concern Questionnaire A12.2
The Audit Report A13
Fraud A14
PIanning
Acceptance of Appointment or Re-appointment B1
Audit Planning Checklist B1.1
Audit Planning Memorandum B2
Materiality B3
Opening Balances/Comparatives B4
Audit Exemption - Republic of reland B5
Audit Exemption - Northern reland B5.1
InternaI ControI Review
nternal Control and Accounting Systems C1
nternal Control Maintenance of Books and Records C2
FinanciaI Statement Areas
ntangible Fixed Assets - Lead Schedule D-
ntangible Fixed Assets - Work Programme D1
Tangible Fixed Assets - Lead Schedule E-
Tangible Fixed Assets - Work Programme E1
nvestments - Lead Schedule F-
nvestments - Work Programme F1
Stocks and Work n Progress - Lead Schedule G-
Stock and Work in Progress - Work Programme G1
Stock and Work in Progress Attendance Substantive Tests G2
Debtors - Lead Schedule H-
Debtors - Work Programme H1
Bank Balances and Cash in Hand - Lead Schedule -
Bank Balances and Cash in Hand - Work Programme 1
Creditors - Lead Schedule J-
Creditors - Work Programme J1
Taxation - Lead Schedule K-
Taxation - Work Programme K1
Liabilities, Contingencies and Charges L1
Statutory Matters, Share Capital and Reserves - Lead Schedule M-
Statutory Matters, Share Capital and Reserves - Work Programme M1
Sales and ncome N1
Purchases and Expenses O1
Salaries and Wages - Lead Schedule P-
Salaries and Wages - Work Programme P1
Related Parties Q1
Compliance with Laws and Regulations R1
Trial Balance S1
Deleted tests T1
Appendix
Client Work Programme Appendix 1
Client Fraud Questionnaire Appendix 2
Confirmation Schedule Appendix 3
Staff ndependence Confirmation Appendix 4
Using the Work of an Auditors Expert Appendix 5
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Procedures for QuaIity Audit 2010
Insert Client Name on Frontsheet
31 December 2010
Return to index
Guide to ExceI version
1 Copy the file from the CD to a client folder. Use "My Computer" or the copy
function in Excel to do this. Give the file a name appropriate to your client.
2 Go to the Frontsheet and enter the client name, year end and currency Go to frontsheet
3 Complete the PQAs work programme on screen.
Start with the planning section Go to planning
4 Most of the work programmes are Microsoft Excel Spreadsheets, so you can
add supporting schedules to this file by inserting new worksheets. The Audit
Planning Memorandum and the Significant Matters Schedule are completed in
Microsoft Word.
5 You can tailor the tests, remove tests or add tests quite easily,
if your audit plan requires. Simply edit the cells or insert or delete the
appropriate rows on the work programme spreadsheets.
6 All of the cells and boxes can be expanded if you want to enter more details or
comments. This will probably be necessary in the Audit Planning
Memorandum and the Significant Matters section.
7 f you delete a test, you may want to move it to the Deleted Tests worksheet at
the end of the workbook. This will ensure that a record of these tests is kept
for possible inclusion next year.
8 You can print individual pages as you go along using the usual Excel print
functions. f you want to print the whole work programme, select "file" from the
main menu, then "print." then "entire workbook". You can preview the entire
workbook by using the "preview" button at this point.
9 See below for the introduction and approach to the work programme. ntroduction
RoII Forward Instructions for new year
1 Save Excel file with new name.
2 Change the year end date on the front sheet.
3 Clear all tests and checklists in the work programmes.
4 Review the deleted tests worksheet. Consider whether any of these tests
should be re-entered in the work programmes.
5 Remove initials and dates from the work programmes.
6 Clear the section conclusions, if these have been completed on screen
7 For lead schedules in the workbook, move current year data to the
comparative columns.
8 Clear all other backup schedules.
9 Start the new engagement at the planning section.
Return to index
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
PROCEDURES FOR QUALITY AUDIT

INTRODUCTION

Chartered Accountants reland is pleased to introduce, Procedures for Quality Audit, an audit procedures
toolkit, for use by our members.

This publication reflects the nternational Standards on Auditing (United Kingdom & reland) (SAs) as
adopted by the Auditing Practices Board (APB). Full text of the SAs (UK&) is available for Chartered
Accountants reland members to read on CHAROT online at www.charteredaccountants.ie. CHAROT
online is updated bimonthly. Hard copies of the SAs (UK&) are also available to purchase from Chartered
Accountants reland. Updating, revisions and improvements are always being made to the SAs (UK&) and
users should refer to http://www.frc.org.uk/apb/ for the most recent update on emerging issues.

This pubIication is based on the new cIarified ISAs (UK&I) that were in issue as at May 2010. These
ISAs (UK&I) are effective for audits of financiaI statements for periods ending on or after 15
December 2010.

f you have audit clients in the Republic of reland or Northern reland, Procedures for Quality Audit is for
you. t is likely that you will be using the Procedures for Quality Audit for small or medium sized clients and
these procedures have been written with this in mind. As a result, some SA requirements, for example
those dealing with listed companies, have not been incorporated into this publication. Nor have some SAs,
which generally do not tend to be relevant to this size of client, namely, SA 250B, The auditors right and
duty to report to regulators in the financial sector; SA 600, Special Considerations Audits of Group
Financial Statements (ncluding the Work of Component Auditors); SA 610, Using the Work of nternal
Auditors.

You should note that the procedures encapsulate the key principles of the SAs (UK&) to encourage the
auditor to design an audit approach appropriate to the circumstances of the individual audit assignment to
which they are being applied. The material is provided for your general guidance and it is up to practitioners
to make best use of it and to carry out audits in accordance with the SAs (UK&). The use of these audit
programmes is not a substitute for a proper understanding of, and application of, the auditing standards
themselves.

To undertake an audit in accordance with SAs (UK&) audit firms must first be in compliance, on a firm-wide
basis, with the nternational Standard on Quality Control (United Kingdom and reland) 1, (SQC1(UK&))
Quality Control for firms that perform audits and reviews of financial statements, and other assurance and
related services engagements. Users should be familiar with the standards they are working to.

Auditors also need to consider the impact of the APB Ethical Standards on their audit engagement. Where
appropriate, reference to those Ethical Standards has been made in the Procedures for Quality Audit.
Using Procedures for QuaIity Audit:
By using the programmes and index as suggested, users will have a structured file laid out in a tried
and tested manner. The order in which the file is prepared though is not the same as the index. Users
must consider first the planning section of the file and complete that section before the audit fieldwork
commences. The planning section is important because it identifies risk and materiality; provides
some checklists of what is usually required and provides a means of recording the planning process.

When the fieldwork commences, the remaining sections (apart from section A) can be completed,
some one at a time and others simultaneously. The order in which those sections are completed will
be determined by the particular assignment. t would be common on small assignments to complete
the bank section first, followed by the sales and purchases sections, then the other control account
areas such as payroll and VAT. The remaining sections then build upon fairly solid ground.

When those sections are complete, it is then the right time to bring together notes, matters arising
and conclusions. This is section A. t does not tell you what conclusions to reach so much as to
provide a methodical way of bringing together the fieldwork findings. Again, Section A provides a
method of recording conclusions and considerations as well as some helpful checklists to assist in the
closing down of the assignment. t is the closing stages which attract much risk of error by
commission or omission. Due care and attention in closing down a file is required.

DiscIaimer
See the End User Licence Agreement.

Chartered Accountants reland

Chartered Accountants reland is the operational name of the nstitute of Chartered Accountants in
reland.
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A1.1
31 December 2010
Signed
Financial Statements
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A1.2
31 December 2010
Signed
Abridged
Financial Statements
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A2
31 December 2010
Signed Letter of Representation
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Procedures for QuaIity Audit 2010
End User Licence Agreement
Go to ndex
Go to Frontsheet
IMPORTANT NOTICE: PIease doubIe cIick on the document beIow to open and read the fuII document.


IMPORTANT NOTICE: PLEASE READ CAREFULLY BEFORE USING THIS PRODUCT

This End User Licence Agreement (the "Licence") is a legal agreement between you (the "Licensee or "you) and Chartered
Accountants reland (the "Institute) of Chartered Accountants House, 47 49 Pearse Street, Dublin 2 (the "Institute or "we) for
this Procedures for Quality Audit (PQA) software product ("Software"), which includes computer software, the data supplied with it,
the associated media, printed materials and any documentation including electronic documentation (the "Documentation)
(together the "PubIication)
1 GRANT AND SCOPE OF LICENCE
1.1 n consideration of your ongoing payment of the licence fee (which includes the initial purchase price of the publication and
the subsequent annual licence fee) and in consideration of you agreeing to abide by the terms of this Licence, the nstitute
hereby grants to you a limited, non-exclusive, non-transferable, revocable licence to use the Publication for your own
internal business purposes only in accordance with the terms of this Licence.
1.2 All intellectual property rights in the Publication shall be and at all times and for all purposes remain vested in the nstitute.
Risk in the Publication shall pass to the Licensee as soon as you open the Publication. You acknowledge and agree that
you are getting a licence to use the Publication 'as is' and that the nstitute is under no obligation to provide any upgrades,
updates, fixes, patches or any support or maintenance services for the Publication.
1.3 BY BREAKNG THE SEAL ON THE CD PACKAGNG, YOU AGREE TO BE BOUND BY THE TERMS OF THS LCENCE
WHCH WLL BND YOU AND ANY OTHER USERS OF THS PUBLCATON. F YOU DO NOT AGREE TO THE TERMS
OF THS LCENCE, THE NSTTUTE S UNWLLNG TO LCENSE THE PUBLCATON TO YOU AND YOU MUST
RETURN THE PUBLCATON TOGETHER WTH ALL ACCOMPANYNG DOCUMENTATON, WTH THE SEAL
UNBROKEN AND THE CD PACKAGNG UNOPENED, TO THE NSTTUTE WTHN SEVEN DAYS OF RECEPT OF
THE PUBLCATON.
2 DISCLAIMER
2.1 The Publication is a guide only and does not purport to give professional advice. t should, accordingly, not be relied upon
as such. While every care has been taken by the nstitute in the preparation of this Publication, the nstitute does not
guarantee the accuracy or veracity of any information or opinion, or the appropriateness, suitability or applicability of any
practice or procedure contained therein. Neither the publisher nor the nstitute shall be liable for any damage or economic
loss, whether arising from the negligence, breach of contract or otherwise of the nstitute, its employees, servants or
agents, or of the authors who contributed to the text.
2.2 The nstitute, shall not be liable for damage or loss occasioned by actions by you or by any third party, in reliance upon the
Publication, which result in losses incurred either by you, those for whom you act as agents, those who rely upon you for
advice, or any third party, or for any breach of contract by the nstitute in respect of any inaccurate, mistaken or negligent
misstatement or omission contained in this Publication.
2.3 All use by you of this Publication and/or the content in the Publication is at your own risk. You assume complete
responsibility for all risk of loss resulting from your use of or referring to or relying on any information obtained from your
use of this Publication. You agree that the nstitute will not be liable for damages arising out of your use or your inability to
use this Publication and you hereby waive any and all claims with respect thereto whether based on contract, tort or other
grounds.
3 LICENSEE'S UNDERTAKINGS
3.1 Except as expressly set out in this Licence or as permitted by applicable law, you undertake not to:
(a) use the Publication other than in accordance with the terms of this Licence and/or use of the Publication for a
purpose for which it was not designed;
(b) permit other individuals to use the Publication except under the terms listed above;
(c) make any translation, modification, adaptation, arrangement or any other alteration of all or part of the Publication
(save where such amendments are required to enable you to carry out audits);
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 3
31 December 2010
MATTERS FORWARD CHECKLIST Return to ndex
Note: Where necessary please use a separate cross-referenced schedule.
Matter
1 Briefly note any changes in the client's activities
or procedures which have arisen this year and
are expected to recur next year.
2 dentify unnecessary schedules and/or tests
which should not be repeated and mark them
clearly as not required next year.
3 With hindsight, identify any other changes in our
audit or accounts preparation approach which
would have made the assignment more cost
effective.
4 Other points forward from this audit:
5 To be completed by auditor
6 To be completed by auditor
7 To be completed by auditor
Accountant in charge: Signed
Date
Reviewer: Signed
Date
consider that have noted all changes and matters relevant to next year and identified all areas
where we have done unnecessary work or could approach the work in a more efficient way.
11/10/2010 Page 9
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 4
31 December 2010
INDEPENDENT PARTNER/HOT FILE REVIEW
Engagement QuaIity ControI Review - EQCR Return to ndex
1.
2.
3.
4.
5.
6.
7.
The objectives of the review may include the following: (The hot file (issues)
review partner should identify which objectives are relevant to the specific
engagement.)
To assess the results of the audit work and the appropriateness of the
key judgements made, particularly in high risk areas.
To consider the significance and appropriateness of the written
representations (section A8), including representations of any potential
changes to the financial statements of which the firm is aware but which
the management of the audited entity has declined to make.
To confirm that all matters which may reasonably be judged by the
auditors to be important and relevant to management or those charged
with governance (section A7), identified during the course of the audit,
have been considered for reporting to the board of directors and/or the
audit committee (or their equivalents).
To confirm the appropriateness of the draft auditors' report.
To confirm the objectivity of the audit engagement partner and key
audit staff and the independence of the firm by reviewing the factors
that could be perceived as threatening either the audit team's objectivity
or the independence of the firm.
For non-listed company audit assignments where audit risk is evaluated
as such that requires a hot file (issues) review in accordance with the firms
internal procedures in relation to engagement quality control reviews;(SQC1)
(UK&) or as a consequence of the identification of a threat to the firm's
objectivity or independence it is considered that a necessary safeguard against
that threat would be a hot file (issues) review. (APB Ethical Standards)
For every listed company audit assignment; or
The following must have an independent partner/hot file (issues) review, before
the audit report is signed by the audit engagement partner:
To assess the planning process (section B) including the identification
of the key components of audit risk identified by the audit team and the
adequacy of the planned responses to those risks.
To assess the quality of the audit.
For non-listed companies it should be noted that it may at times be appropriate
to have an independent review of key issues (hot issues) rather than a whole file
review. The level of review required should be determined in accordance with
the level of risk or threat identified.
11/10/2010 Page 10
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 4
31 December 2010
INDEPENDENT PARTNER/HOT FILE REVIEW
Independent Partner/Hot FiIe (ISSUES) Review Notes
No Matter arising CIearance CIeared
by
Date
1
2
3
4
5
CONCLUSIONS OF INDEPENDENT PARTNER/HOT FILE (ISSUES) REVIEW
(i)
(ii)
(iii)
(iv)
(v)
Signed
Date
Name
confirm that:
am satisfied that the objectives set out above, that are relevant to this
independent partner/hot file (issues) review, have been achieved.
am an independent partner/hot file (issues) reviewer having sufficient
experience and authority to fulfil the role of independent review partner;
have not been engaged in the performance of the audit or the
provision of other services or with any other responsibilities for the
audited entity or any entity within the same group of entities;
confirm that have not carried out this independent partner/hot file
(issues) review for more than five consecutive years;
have, as a minimum, reviewed the Planning Memorandum, the
Matters for Attention of Partner, the client's Financial Statements and
the proposed Audit Report;
11/10/2010 Page 11
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 5.1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
AUDIT COMPLETION - Audit Partner's ConcIusion Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment
Partner
InitiaIs Date
1 have considered the Audit Planning Memorandum and Significant
Matters and documented my conclusions.
2 have checked or completed the File Completion Checklist.
3 confirm that the relevant ethical requirements, including those pertaining
to independence relating to financial statements have been complied with
and no issues affecting these have arisen during the audit that were not
addressed on accepting the audit SA(UK&)200(14) ES(1)(48)
4 The audit has been planned and carried out with appropriate professional
scepticism and in accordance with all SAs. SA(UK&)200(15)(18)(22)
5 confirm that have not been asked to reduce or change the scope of the
audit while it has been in progress. (f this confirmation is not possible
refer to where the considerations arising from the request to reduce or
change the audit scope have been recorded).
SA(UK&)210(14)(15)(16)(17)
6 acknowledge my responsibility for the overall quality of this audit
assignment. SA(UK&)220(8)
7 Appropriate measures have been taken to ensure that the members of the
engagement team have complied with the requirements of the APB
Ethical Standards and the Chartered Accountants reland's ethical
guidelines. SA (UK&)220(9)(10)
have:
(i) obtained and recorded relevant information from the firm and, where
applicable, network firms, to identify and evaluate circumstances and
relationships that create threats to independence;
(ii) recorded my evaluation of information on identified breaches, if any,
of the firm's independence policies and procedures to determine
whether they create a threat to independence for the audit engagement;
(iii) recorded the action taken to eliminate such threats or reduce them
to an acceptable level by applying safeguards; and
(iv) promptly reported to the firm any failure to resolve the matter for
appropriate action. SA(UK&)220(11)
conclude that and my firm have complied with the APB Ethical
Standards and the Chartered Accountants reland's ethical guidelines in
respect of this audit engagement. SA(UK&)220(12)
9 confirm that have not obtained information that would have caused the
firm to decline the audit engagement if that information had been available
earlier. SA(UK&)220(13)
10 confirm that the audit file has been reviewed in accordance with the
firm's policies and procedures and am satisfied that sufficient appropriate
audit evidence has been obtained to support the conclusions reached and
for the auditors report to be issued. SA(UK&)220(16)(17)
SA(UK&)500(6)
11 am satisfied that and members of the engagement team have
undertaken appropriate consultation during the course of the engagement,
both within the engagement team and between the engagement team and
others at the appropriate level within or outside the firm, that such
consultations have been documented and the agreed actions have been
implemented accordingly. SA(UK&)220(18)
8
11/10/2010 Page 12
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 5.1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
AUDIT COMPLETION - Audit Partner's ConcIusion Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment
Partner
InitiaIs Date
12 have consulted with the independent/hot file (issues) review partner, if
appointed, during the course of the audit and the engagement quality
control review, if appropriate, has been completed SA(UK&)220(20)(25)
A4
13 Where differences of opinion arose within the engagement team, with
those consulted and, where applicable, between the engagement partner
and the engagement quality control reviewer (independent/hot file (issues)
review partner), the engagement team followed the firm's policies and
procedures for documenting, dealing with and resolving differences of
opinion. SA (UK&1)220(22)
14 have considered two way communication between the auditor and those
charged with governance and confirm this has been adequate for an
effective audit or, if it has not, have documented the appropriate actions
taken and raised a point carried forward as appropriate.
A7
15 have consulted with the Ethics Partner (as appropriate) and recorded the
discussions and conclusions drawn. ES1(44)
The audit documentation has been prepared so as to demonstrate the:
(a) issues identified with respect to compliance with relevant ethical
requirements and how they were resolved SA(UK&)220(24);
(b) conclusions on compliance with independence requirements that apply
to the audit engagement, and any relevant discussions with the firm that
support these conditions SA(UK&)220(24);
(c) conclusions reached regarding the acceptance and continuance of
client relationships and audit engagement SA(UK&)220(24);
(d) nature and scope of, and conclusions resulting from, consultations
undertaken during the course of the audit engagement. SA(UK&)220(24)
17 Departures from a basic principle or an essential procedure has occurred
only in exceptional circumstances that were relevant in the circumstances
of the audit. The circumstances for the departure and the alternative audit
procedures performed to achieve the objective of the audit have been
documented. SA 230(UK&)23)
18 have concluded that the information in the directors' report is consistent
with the financial statements. SA(UK&)720B (8)(9)(10)(11)(12)
19 have concluded that the other information accompanying the financial
statements is consistent with the information contained in the financial
statements. SA(UK&)720A(6)(7)
20 Nothing has come to my attention during the audit which would prevent
the firm, subject to review next year, accepting reappointment or
remaining in office. SA(UK&)220(9)(10)(11)(12) SQC1(28)
16
11/10/2010 Page 13
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 5.2
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
FiIe CompIetion CheckIist Prepared by:
Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment
Senior
InitiaIs and
Date
Manager InitiaIs
and Date
1 All matters in the Planning Memorandum dealt with, recorded and cross
referenced to the Matters for the Attention of Partner.
2 Significant matters have been recorded, reviewed and cleared. A6
3 All unadjusted errors are listed on the summary sheet (see A9.1).
Appropriate management representations have been drafted (see A8)
and, if necessary, a draft qualified audit report has been prepared.
4 The post audit review of materiality levels and risk assessment has been
completed. SA(UK&)320(12)(13)
B2/B3/A6
5 Post Balance Sheet Events checklist completed and the current position
noted, and supported by evidence.
A11
6 Going Concern checklist completed and the current position noted, and
supported by evidence.
A12.1
7 Preliminary and Final Analytical Reviews documented and corroborative
evidence obtained. SA(UK&)520(6)
B2/A6/A10.1
8 Laws and Regulations checklist completed and the current position noted. R1
9 Related Party checklist completed and appropriately documented. Q1
10 Appropriate consideration has been given to the risk of fraud and money
laundering, appropriate action taken and reference is given to where those
actions have been documented.
B1.1/B2/A14
11 Permanent information has been reviewed and updated as appropriate.
12 The obligations in a current letter of engagement have been satisfied.
13 Accounts disclosure checklist completed in accordance with the firm's
procedures and any regulatory requirements met.
A10.1
14 f, exceptionally, we consider we should withdraw from the engagement
(because for example, management have not taken the required steps
following our report on fraud or we have serious concerns about
management's integrity), now consider our further professional and legal
responsibilities and whether any further report is required, and to whom.
15 Reconfirm the classification of the company as small, medium or large in
accordance with the Companies Acts 1963 - 2009 (RO) or Companies
Acts 2006 (N).
16 f required, abbreviated/abridged financial statements have been prepared
for filing including the appropriate auditors' report. Note that medium sized
companies in Northern reland are now required to disclose turnover in
their abbreviated financial statements. However they are still exempt from
the requirement to provide the particulars of turnover.
17 The firm's quality control procedures have been followed.
18 Audit documentation is sufficient to enable an experienced auditor, having
no previous connection with the audit, to understand the nature, timing
and extent of the audit procedures performed, the results of the audit
procedures, the audit evidence obtained, significant matters arising during
the audit, the conclusions reached thereon and significant professional
judgements made in reaching those conclusions. SA(UK&)230(8)
19 Any independent hot file (issues) review has been documented if such a
review was appropriate. (SA(UK&)220(36) SQC 1(UK&)(60)(61)(63))
A4
20 Review of communication to those charged with governance checklist
completed and letter prepared for client if required. SA(UK&)260(16)
A7
11/10/2010 Page 14
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 5.2
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
FiIe CompIetion CheckIist Prepared by:
Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment
Senior
InitiaIs and
Date
Manager InitiaIs
and Date
21 Tax Computations prepared and reviewed by tax personnel and the tax
section approved by partner.
K1
22 Actual costs have been compared to our fees budget and variances
explained.
23 Lead Schedules agree to the most recent accounts and there are no
matters outstanding in individual sections which have not been collated in
the completion section of the file. All matters are addressed and reflected
in the audit report as appropriate.
24 The Matters Forward schedule has been completed. A3
25 Nothing has come to our attention during the audit which would prevent
us, subject to review next year, accepting reappointment or remaining in
office. SA(UK&)220(14)(8)(12) SQC1(28)
ConcIusion
26 The audit has been conducted in accordance with SAs (UK&) and the
firm's procedures, and our working papers contain sufficient evidence to
support the audit opinion.
FinaI CompIiation of the Audit FiIe
27 The audit file is assembled and completed within 60 days after the date of
the auditors report SA(UK&)230(7)(9)(14)(15). No documents should be
removed from the file following this dated. Any documents added to the
file after this dated should be initialled, and dated, and an adequate
explanation should be documented for their late inclusion.
11/10/2010 Page 15
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 6
31 December 2010
Return to ndex
Review of Significant Matters
You should:
Prepare a memorandum of significant matters
or
Use the template memorandum of significant matters supplied as a Word document with this pack.
11/10/2010 Page 16
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 7
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Review of Communications to Those Charged With Governance Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe /
Comment
InitiaIs Date
1
2
3
Matters to be communicated with those charged with
governance
No matter
arising
Communication
required oraIIy
onIy*
Communication
required in
writing Reference
1 The auditors views about significant qualitative aspects of the
entity's accounting practices including accounting policies,
accounting estimates and financial statement disclosures.
Where applicable, explain to those charged with governance
why the auditor considers a significant accounting practice, that
is acceptable under the applicable financial reporting
framework, not to be most appropriate to the particular
circumstances of the entity; SA(UK&)260(16a)
2 Significant difficulties, if any, encountered during the audit;
SA(UK&)260(16b)
3 Significant matters, if any, arising from the audit that were
discussed, or subject to correspondence with management;
SA(UK&)260(16c)
4 Details resulting in a material misstatement resulting from fraud
or a suspected fraud; SA(UK&)240(21)(38c)(40)(41)(42)
5 Details surrounding the possible non-compliance with laws and
regulations; SA(UK&)250(14)(19)(22)(23)(24)
6 Care is needed to ensure that the client is not "tipped off in the
UK or an "investigation prejudiced in the RO where a money
laundering suspicion report is made.
7 nstances where the auditor concludes that managements
refusal to allow the auditor to send a confirmation request is
unreasonable; SA(UK&)505(9)
8 nstances where the auditor obtains audit evidence that the
opening balances contain misstatements that could materially
affect the current periods financial statements;
SA(UK&)510(7)
9 Significant matters arising during the audit in connection with
the entity's related parties; SA(UK&)550(27)
10 Details of material subsequent events;
SA(UK&)560(7)(10)(13)(14)(17)
11 Conditions identified during the course of the audit that may
cast significant doubt on the entity's ability to continue as a
going concern; SA(UK&)570(23)
12 Details of a material misstatement that exists and affects the
prior period financial statements; SA(UK&)710(18)
Determine the appropriate person(s) within the entity's governance structure with
whom to communicate. SA(UK&)260(11)(12)(13)
Discuss the points with management, document the recommendations made and
the solutions agreed upon.
Evaluate whether the two-way communication between the auditor and those
charged with governance has been adequate for the purpose of the audit. f it
has not, evaluate the effect, if any, on the assessment of the risks of material
misstatement and ability to obtain sufficient appropriate audit evidence, and take
appropriate action. SA(UK&)260(22)
The foIIowing programme has been drafted on the assumption that the entity's management and those charged with governance
are one and the same. If this is not the case in the current audit pIease refer to the ISAs for further guidance. Communications
shaII be made with those charged with governance on a timeIy basis.
Note that for periods ending on or after 15 December 2010, it is no Ionger necessary to issue a Letter to Those Charged with
Governance for every audit. The auditor shouId use his/her discretion to determind whether it is necessary to write to those
charged with governance.
The following is a list of specific matters that require to be communicated to those charged with governance:
11/10/2010 Page 17
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 7
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Review of Communications to Those Charged With Governance Prepared by:
Reviewed by:
Return to ndex
The foIIowing programme has been drafted on the assumption that the entity's management and those charged with governance
are one and the same. If this is not the case in the current audit pIease refer to the ISAs for further guidance. Communications
shaII be made with those charged with governance on a timeIy basis.
13 Material inconsistencies in other information which is included
in a document containing audited financial statements and the
auditors report thereon; SA(UK&)720A(10)(13)(16)
14 Uncorrected misstatements, other than those that are clearly
trivial; SA(UK&)450(12)(13). See A9.2
15 Expected modifications to the auditor's report, including
qualification or explanatory paragraph;
SA(UK&)705(12)(14)(19a)(28)SA(UK&)706(9)
16 Significant deficiencies in internal control identified during the
audit; (These shall be communicated in writing with those
charged with governance on a timely basis) SA(UK&)265(9)
17 Other deficiencies in internal control identified during the audit
that have not been communicated to management by other
parties and that, in the auditor's professional judgement, are of
sufficient importance to merit management attention;
SA(UK&)265(10)
18 Matters of governance interest, including ethical matters;
19 Any other relevant matters.
Where a Ietter is sent: Date Sent InitiaIs
a) Matters arising discussed with client on:
b) Letter to Those Charged With Governance drafted:
c) Letter to Those Charged With Governance sent to client:
d) Letter to Those Charged With Governance responses received
from client
*Where matters required by SA(UK&)260 to be communicated are communicated orally include them in the audit
documentation and when and to whom they were communicated. Where matters have been communicated in
writing, retain a copy of the communication as part of the audit documentation. SA(UK&)260(23)
*Communicate in writing with those charged with governance regarding significant findings from the audit if, in the
auditor's professional judgement, oral communication would not be adequate. SA(UK&)260(19)
11/10/2010 Page 18
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 8
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Letter of Representation Review Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe /
Comment
InitiaIs Date
1 The following is a list of the areas where written representations
are required from management in accordance with other SAs.
SA(UK&)580(Appendix 1). f in addition to these representations,
it is determined that it is necessary to obtain more written
representations to support other audit evidence relevant to the
financial statements, request such other representations.
SA(UK&)580(13)
a
(i) Request from management a written representation that it has
fulfilled its responsibility for the preparation of the financial
statements in accordance with the applicable financial reporting
framework. SA(UK&)580(9)(10)
(ii) Request management to give a written representation that it
has provided the auditor with all the relevant information and
access as agreed in the terms of the audit engagement and all
transactions have been recorded and reflected in the financial
statements. SA(UK&)580(11)(12)
(iii) The responsibility of those charged with governance is
required to be described in the letter of representation.
SA(UK&)580(11)
b
(i) acknowledging responsibility for the design and implementation
of internal control to prevent and detect fraud;
(ii) disclosure to the auditor the results of its assessment of the
risk that the financial statements may be materially mis-stated as a
result of fraud;
(iii) disclosure of its knowledge of fraud or suspected fraud
affecting the entity involving management, or employees who have
significant roles in internal control or others where the fraud could
have a material effect on the financial statements; and
(iv) disclosure of its knowledge of any allegations of fraud, or
suspected fraud, affecting the entity's financial statements
communicated by employees, former employees, analysts,
regulators or others. SA(UK&)240(90)
c
All known instances of non-compliance or suspected non-
compliance with laws and regulations who's effects should be
considered when preparing the financial statements have been
disclosed to the auditors.
d
They believe the effects of uncorrected misstatements are
immaterial, individually and in aggregate, to the financial
statements as a whole. A summary of the misstatements shall be
included in or attached to the written representation.
e
All known litigations and claims whose effects should be
considered when preparing the financial statements have been
disclosed to the auditor and accounted for and disclosed in
accordance with the applicable financial reporting framework.
AIthough written representations provide necessary audit evidence, they support other audit evidence
obtained and do not on their own provide sufficient appropriate audit evidence about any of the matters with
which they deaI.
The Letter of Representation shouId be taiIored to the requirements of this audit. Specific references to
baIances, transactions and amounts, etc, are better than generaI representations.
ISA(UK&I)240(39) -The auditors responsibiIity reIating to fraud in an audit of financiaI statements
ISA(UK&I)580 -ResponsibiIity for the financiaI statements
ISA(UK&I)250(16) - Consideration of Iaws and reguIations in an audit of financiaI statements
ISA(UK&I)450(14) - EvaIuation of misstatements identified during the audit
ISA(UK&I)501(12) - Audit Evidence - Specific considerations for seIected items
11/10/2010 Page 19
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 8
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Letter of Representation Review Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe /
Comment
InitiaIs Date
AIthough written representations provide necessary audit evidence, they support other audit evidence
obtained and do not on their own provide sufficient appropriate audit evidence about any of the matters with
which they deaI.
f
They believe the significant assumptions used in making
accounting estimates are reasonable.
g
They have disclosed to the auditor the identity of the entity's
related parties and all the related party relationships and
transactions of which they are aware and they have appropriately
accounted for and disclosed such relationships and transactions.
h
All events occurring subsequent to the date of the financial
statements which requires adjustment and or disclosure have
been adjusted or disclosed.
i
Plans for future action and the feasibility of these plans.
j
Any restatement made to correct a material misstatement in prior
periods financial statements that affect the comparative
information.
2 The date of the written representations shall be as near as
practicable to, but not after, the date of the auditor's report on the
financial statements and shall be for all financial statements and
periods referred to in the auditor's report SA(UK&)580(14)
3 Written representations are in the form of a representation letter
addressed to the auditor. SA(UK&)580(15)
4 f there are concerns surrounding the integrity or diligence of
management, determine the effect that such concerns may have
on the reliability of representations and audit evidence in general.
SA(UK&)580(16)
5 f written representations are inconsistent with other audit
evidence perform additional audit procedures to attempt to resolve
the matter. f the matter remains unresolved determine the effect
that this may have on the reliability of representations and audit
evidence in general. SA(UK&)580(17)
6 f it is concluded that written representations are not reliable take
appropriate action including determining the possible effect on the
opinion in the auditor's report in accordance with SA(UK&)705.
SA(UK&)580(18)
7 f management does not provide one or more of the requested
written representations discuss the matter with management,
evaluate the integrity of management, evaluate the effect that this
may have on the reliability of representations and audit evidence
in general and take appropriate actions, including determining the
possible effect on the opinion in the auditor's report.
SA(UK&)580(19)
8 Disclaim an opinion on the financial statements if there is sufficient
doubt about the integrity of management such that written
representations are not reliable or if management does not
provide the written representations required. SA(UK&)580(20)
ISA(UK&I)560(9) - Subsequent events
ISA(UK&I)570(16e) - Going concern
ISA(UK&I)540(22) - Auditing accounting estimates, incIuding fair vaIue accounting estimates and reIated
discIosures
ISA(UK&I)710(9) - Comparative information - corresponding figures and comparative financiaI statements
ISA(UK&I)550(26) - ReIated parties
11/10/2010 Page 20
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 9.1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
SUMMARY OF ERRORS Prepared by:
Reviewed by:
Return to ndex
Sch
Ref.
C C C C C C
TotaI: - - - - - -
For example:
Tangible Fixed Assets
nvestments
RESULTS
Audit materiality: 0
Performance materiality: 0
Specific materiality (see definition on B3): Audit balance A 0
Audit balance B
The aggregate of uncorrected misstatements is/is not considered to be material. (Delete as appropriate)
Materiality for the audit should/should not be reassessed as a result of errors found. (Delete as appropriate)
The audit Materiality level set at planning and updated as appropriate is as noted below:
All errors and deviations must be recorded and comments noted as to the consequences of the error. f adjustments are made then this should be noted
accordingly. Unadjusted errors brought forward from the previous period which do not reverse (i.e. have a cumulative effect) should also be included on this
schedule.
Record the reference and an actual (that is an established) or known amount. Where an error has been found as a result of sampling techniques, the error
will need extrapolating (projecting) in order to impute sample findings to the whole population.
Unadjusted B/S
Effect
PotentiaI Adjusting JournaIs Nature of and Reason for Error or Deviation ActuaI Error Projected Error Unadjusted Profit
Effect
11/10/2010 Page 21
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 9.2
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Summary of Errors Prepared by:
Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment InitiaIs Date
1 Communicate on a timely basis all misstatements accumulated during the
audit with the appropriate level of management, unless prohibited by law
or regulation. SA(UK&)450(8)
A7
2 f management refuses to correct some or all of the misstatements
communicated, obtain an understanding of managements reasons for not
making the corrections and take that understanding into account when
evaluating whether the financial statements as a whole are free from
material misstatement. SA(UK&)450(9)
3 Reassess materiality in light of the misstatements accumulated during the
audit. SA(UK&)450(10)
A9.1
4 Communicate with those charged with governance uncorrected
misstatements and the effect that they may have on the opinion in the
auditors report, unless prohibited by law or regulation. Request that
uncorrected misstatements be corrected. SA(UK&)450(12)
A7
5 Communicate with those charged with governance the effect of
uncorrected misstatements related to prior periods on the relevant
classes of transactions, account balances or disclosures, and the
financial statements as a whole. SA(UK&)450(13)
CONCLUSION
Communication and correction of misstatements
EvaIuating the effect of uncorrected misstatements
Date
Accountant in charge: Signed
Date
Reviewer: Signed
Communication with those charged with governance
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that the errors noted have been appropriately accounted for in the financial statements.
11/10/2010 Page 22
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Review of FinanciaI Statements and FinaI AnaIyticaI Review Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment InitiaIs Date
1. Accounting estimates and Areas of Judgement: Consider any accounting
estimates or significant areas of judgement in the financial statements. For each
estimate or area consider whether there is sufficient supporting evidence on file, in
the relevant areas, to confirm their reasonableness together with the adequacy of
their presentation and disclosure in the financial statements.
2 DiscIosure CheckIist: Where appropriate, confirm that the disclosures are complete,
fair and compliant with appropriate legislation and accounting standards by
completing an appropriate disclosure checklist.
FinaI AnaIyticaI Review
3 Obtain a final draft of the financial statements including the detailed profit and loss
account, balance sheet and notes. Compare to the prior year and if available,
budgets and forecasts. Calculate key variances. Ensure that adequate explanations
have been obtained for key variances.
4 Calculate key ratios such as gross profit margin, debtor days and stock days. Ensure
that explanations for variances have been obtained
5 Consider the financial statements as a whoIe. Do the financial statements, as a
whole, make sense? Do they tell a consistent story? Are the explanations received
consistent with one another? Do the the financial statements adequately reflect the
information and expIanations previously obtained and concIusions previously
reached during the course of the audit?
6 Do the financial statements contain any Iarge or unusuaI items that were not
adequately addressed by standard audit tests or specific tests? f so, carry out
additionaI tests and obtain sufficient additional information and expIanations.
7 Does your review of the financial statements reveal any new factors which may
affect the presentation of, or disclosures in, the financial statements?
8 Compare the information in the financial statements with other pertinent data, such
as pubIished industry resuIts. Does this comparison support the overall conclusion
as to whether the financial statements as a whole are consistent with the auditor's
knowledge of the entity's business?
9 s there evidence that the financial statements may have been unduIy infIuenced by
the desire of those charged with governance to present matters in a favourable or
unfavourable light?
10 Conclude on the potential impact on the financial statements of the aggregate of
uncorrected misstatements (including those arising from bias in making accounting
estimates) identified during the course of the audit and the preceding period's audit, if
any.
CONCLUSION
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude that
the above objectives have been properly achieved.
Date
Accountant in charge: Signed
Date
Reviewer: Signed
11/10/2010 Page 23
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.2a
31 December 2010 InitiaIs Date
Common omissions from smaIIer company financiaI Prepared by:
statements: An Aide Memoir. Reviewed by:
RepubIic of IreIand version
Return to ndex
Yes/No/NA
nitials and
Date
1



2


4
5
6
7
9
10
3



o mportant post balance sheet events
o Research and Development
o Likely future developments
o The existence of branches outside the State
o A statement of the pertinent facts;
o The nature of the concern;
s there a concern over the company's ability to continue as a going concern? Consider the need
to include an appropriate disclosure note. Best practice is that such a note should include the
following:
Programme
o A statement that the financial statements have been prepared on the going concern basis;
o A statement of the assumptions adopted by those charged with governance, which should be
clearly distinguishable from the pertinent facts;
o (Where appropriate and practicable) a statement regarding the pIans of those charged with
governance for resolving the matters giving rise to the concern: and
o Details of any relevant actions by those charged with governance.
Has deferred tax been calculated and disclosed where material?
Are the tax charge disclosures adequate? Do the disclosures include a reconciliation of profit/loss
at standard rate to the actual tax charge?
o Political donations (Electoral Act 1997)
o Books of account paragraph under Section 202 of the CA1990
o Approval and signature
Do the financial statements or the directors' report include a statement of directors' responsibilities?
s a cash flow statement required?
s a separate statement of total recognised gains and losses required? f not, has a reference to
this been made on the face of the profit and loss account?
f page numbers are referred to in the auditors' report, are these correct?
8
This is not a comprehensive discIosure checkIist. It is intended to be an aide memoir and the questions do not contain aII of the
detaiIs that are required by IegisIation or accounting standards. Practitioners shouId ensure that that they have adequate
aIternative procedures such as a fuII discIosure checkIist to ensure that financiaI statements compIy with IegisIation and
accounting standards. The aide memoir does not address the requirements of the ASB FinanciaI Reporting Standard for SmaIIer
Entities (FRSSE).
Consider the need to complete a full disclosure checklist to ensure that the financial statements
give a true and fair view. You may want to refer to such a checklist if the answer to any of the
following questions is No, or if the circumstances of the company indicate this.
s the "Directors and other information page up to date and accurate? This information is included
in the financial statements as best practice only.
Does the directors report include all matters required by law including:
o Principal activities, business review and future developments
o Risks and uncertainties facing the company
o Results and dividends
o nterests of directors
11/10/2010 Page 24
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.2a
31 December 2010 InitiaIs Date
Common omissions from smaIIer company financiaI Prepared by:
statements: An Aide Memoir. Reviewed by:
RepubIic of IreIand version
Return to ndex
Yes/No/NA
nitials and
Date
Programme
This is not a comprehensive discIosure checkIist. It is intended to be an aide memoir and the questions do not contain aII of the
detaiIs that are required by IegisIation or accounting standards. Practitioners shouId ensure that that they have adequate
aIternative procedures such as a fuII discIosure checkIist to ensure that financiaI statements compIy with IegisIation and
accounting standards. The aide memoir does not address the requirements of the ASB FinanciaI Reporting Standard for SmaIIer
Entities (FRSSE).
! Revaluation of fixed assets
! mpairment of fixed assets and intangible assets
! Provisions
! Research and Development
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Have investment properties been separately disclosed? These should be revalued annually and
should not be depreciated.
Are PAYE and PRS disclosed as separate liabilities in accordance with company law
Where loan covenants have been breached, have you considered whether these loans should be
reclassified as repayable on demand? Consider whether this matter should be disclosed in a Going
Concern note.
Are particulars of directors remuneration disclosed in the financial statements?
Are exceptional items adequately accounted for and disclosed in the financial statements?
f there is an ultimate controlling party? s there adequate disclosure regarding this?
! Hire purchase contracts
! Operating lease commitments?
Has a reserves movement note been included?
Has a reconciliation of shareholders funds note been included?
t may be necessary to recognise preference shares as liabilities under FRS 25. Has this matter
been considered?
Have related party transactions been fully disclosed?
Are creditors greater than one year disclosed as such in the balance sheet?
Has the split of loans on the basis of the repayment schedule been disclosed?
Has security for bank loans and overdrafts been disclosed? Have all charges over an entity's
assets been appropriately disclosed? These should be agreed to CRO records.
! Finance leases
Has adequate disclosure been made of :
Has adequate disclosures of financial instruments been made?
! Pensions costs
! Leasing costs
! Foreign currencies
! Deferred tax
! Valuation of stocks
! Valuation of work in progress
! Calculation of turnover and basis of recognition of income
For example:
s there adequate disclosure of accounting policies?
! Depreciation
11
Have fixed assets subject to finance leases or hire purchase been separately disclosed?
s there a statement regarding replacement costs in the stocks and work in progress note?
Are disclosures of audit fees adequate?
Have turnover, cost of sales and gross profit been disclosed in the profit and loss account?
Where the company pays dividends, are dividends paid included by way of note? Where dividends
are proposed, but not yet approved, these should not be accrued but should be disclosed.
Where tangible fixed assets have been re-valued, have adequate disclosures been made of the
date and basis of the revaluation and the valuer? Have the historic cost details of these fixed
assets been disclosed?
11/10/2010 Page 25
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.2a
31 December 2010 InitiaIs Date
Common omissions from smaIIer company financiaI Prepared by:
statements: An Aide Memoir. Reviewed by:
RepubIic of IreIand version
Return to ndex
Yes/No/NA
nitials and
Date
Programme
This is not a comprehensive discIosure checkIist. It is intended to be an aide memoir and the questions do not contain aII of the
detaiIs that are required by IegisIation or accounting standards. Practitioners shouId ensure that that they have adequate
aIternative procedures such as a fuII discIosure checkIist to ensure that financiaI statements compIy with IegisIation and
accounting standards. The aide memoir does not address the requirements of the ASB FinanciaI Reporting Standard for SmaIIer
Entities (FRSSE).
34
35
36
37
38
39
Have debtor balances been checked to ensure that they are not disclosed as negative creditors
and vice versa?
(d) the maximum amount of the liability during the period;
(k) in the case of directors loans, where advantage has been taken of Section 32 of Companies Act
1990, the aggregate value of such loans shall be expressed as a percentage of the company's
relevant assets;
(l) any amendment to the terms of any such loans in situations where the relevant assets of the
company have fallen, (Section 42, Companies Act 1990)
Has a statement been included in the financial statements in relation to transactions, arrangements
and agreements made by the company for persons who at any time during the relevant period were
officers of the company (but not directors) of the aggregate amounts outstanding at the end of the
relevant period and the number of officers for whom the transactions were made? Such a
statement is not required if the aggregate amount outstanding at the end of the period for that
officer does not exceed C3,174. (Section 42, Companies Act 1990)
33
Are there any post balance sheet events that require disclosure?
(g) the amount for which the company was liable under the guarantee or in respect of the security
both at the beginning and at the end of the financial period;
(h) the maximum amount for which the company may become liable;
(i) the amount paid and any liability incurred by the company for the purposes of fulfilling the
guarantee or discharging the security;
(j) the value of any other transaction not covered by (a) to (i) above;
(c) the amount of the outstanding balance including principal and interest at the beginning and end
of the financial period;
Consider the auditors duties to report instances where there are reasonable grounds for believing
that the company or an officer or an agent of it has committed an indictable offence under the
Companies Acts. (Sections 194(5) 1990 Act) - See R1 for further details on such offences
(e) the amount of interest which, having fallen due, has not been paid;
(f) the amount of any provision made in respect of any failure or anticipated failure by the borrower
to repay the whole or part of the loan or to pay the whole or part of any interest thereon;
Have transactions, loans and guarantees to and from directors/connected persons been disclosed,
as required by Sections 41 to 43 of the Companies Act 1990? Such disclosures shall include:
(a) a statement of fact that the transaction was made during the period;
(b) the name of the person for whom the transaction was made and where that person is or was
connected to a director of the company, the name of that director;
s there a note of the directors' approval of the financial statements?
Have government grants been disclosed?
Have pensions costs and accruals been disclosed? Where there is a defined benefit pension
scheme, have adequate disclosures been made?
Are prior year adjustments appropriately accounted for and disclosed in the financial statements?
11/10/2010 Page 26
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.2b
31 December 2010 InitiaIs Date
Common omissions from smaIIer company financiaI Prepared by:
statements: An Aide Memoir. Reviewed by:
Northern IreIand version
Return to index
Yes/No/NA
InitiaIs and
Date
1
o Third party indemnity (Para 236, CA2006)
o Business review (Large and Medium sized)
o mportant post balance sheet events (Large and medium sized)
o Research and Development (Large and medium sized)
o Likely future developments (Large and medium sized)
o Policy of payment of creditors (Large companies and plcs)
4
5
6
7
8
9
o Approval and signature
The directors report shall contain the following statement: n the case of each of the persons
who are directors of the company at the date when this report was approved:
so far as each of the directors is aware, there is no relevant audit information (as defined in
the Companies Act 2006) of which the company's auditors are unaware; and
each of the directors has taken all the steps that he ought to have taken as a director to
make himself aware of any relevant audit information (as defined) and to establish that the
company's auditors are aware of that information.
f page numbers are referred to in the auditors' report, are these correct?
s a cash flow statement required?
Programme
Consider the need to complete a full disclosure checklist to ensure that the financial
statements give a true and fair view. You may want to refer to such a checklist if the answer to
any of the following questions is No, or if the circumstances of the company indicate this.
This information is included in the financial statements as best practice only.
s the "Directors and other information page up to date and accurate?
o Results and dividends
This is not a comprehensive discIosure checkIist. It is intended to be an aide memoir and the questions do not contain aII of the
detaiIs that are required by IegisIation or accounting standards. Practitioners shouId ensure that that they have adequate
aIternative procedures such as a fuII discIosure checkIist to ensure that financiaI statements compIy with IegisIation and
accounting standards. The aide memoir does not address the requirements of the ASB FinanciaI Reporting Standard for
SmaIIer Entities (FRSSE).
o Financial nstrument Risk disclosures (Large and Medium sized)
2
s a separate statement of total recognised gains and losses required? f not, has a reference
to this been made on the face of the profit and loss account?
o Political and charitable contributions
o The existence of branches outside the UK (Large and medium sized)
Do the financial statements or the directors' report include a statement of directors'
responsibilities?
Are disclosures of audit fees adequate?
Does the directors report include all matters required by law including:
o Principal activities,
3
o Large differences between market value and carrying value of land (Large and med
11/10/2010 Page 27
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.2b
31 December 2010 InitiaIs Date
Common omissions from smaIIer company financiaI Prepared by:
statements: An Aide Memoir. Reviewed by:
Northern IreIand version
Return to index
Yes/No/NA
InitiaIs and
Date
Programme
This is not a comprehensive discIosure checkIist. It is intended to be an aide memoir and the questions do not contain aII of the
detaiIs that are required by IegisIation or accounting standards. Practitioners shouId ensure that that they have adequate
aIternative procedures such as a fuII discIosure checkIist to ensure that financiaI statements compIy with IegisIation and
accounting standards. The aide memoir does not address the requirements of the ASB FinanciaI Reporting Standard for
SmaIIer Entities (FRSSE).
11
12
! Revaluation of fixed assets
! mpairment of fixed assets and intangible assets
! Provisions
! Research and Development
14
15
16
17
18
19
20
21
22
23
24
10
13
! Depreciation
! Deferred tax
Where the company pays dividends, are dividends paid included by way of note? Where
dividends are proposed, but not yet approved, these should not be accrued but should be
disclosed.
Where tangible fixed assets have been re-valued, have adequate disclosures been made of
the date and basis of the revaluation and the valuer? Have the historic cost details of these
fixed assets been disclosed?
s there adequate disclosure of accounting policies? For example:
! Calculation of turnover and basis of recognition of income
o The nature of the concern;
Are the tax charge disclosures adequate? Do the disclosures include a reconciliation of
profit/loss at standard rate to the actual tax charge?
o A statement that the financial statements have been prepared on the going concern
basis;
o A statement of the pertinent facts;
o A statement of the assumptions adopted by those charged with governance, which should
be clearly distinguishable from the pertinent facts;
o (Where appropriate and practicable) a statement regarding the pIans of those charged with
governance for resolving the matters giving rise to the concern: and
o Details of any relevant actions by those charged with governance.
! Foreign currencies
Have turnover, cost of sales and gross profit been disclosed in the profit and loss account?
Have investment properties been separately disclosed? These should be revalued annually
and should not be depreciated
Are creditors greater than one year disclosed as such in the balance sheet?
Has the split of loans on the basis of the repayment schedule been disclosed?
Have fixed assets subject to finance leases or hire purchase been separately disclosed?
s there a statement regarding replacement costs in the stocks and work in progress note?
Are particulars of directors remuneration disclosed in the financial statements?
s there a concern over the company's ability to continue as a going concern? Consider the
need to include an appropriate disclosure note. Best practice is that such a note should
include the following:
Has deferred tax been calculated and disclosed where material?
Has security for bank loans and overdrafts been disclosed? Have all charges over an entity's
assets been appropriately disclosed? These should be agreed to Companies' House records.
! Valuation of stocks
! Valuation of work in progress
! Pensions costs
! Leasing costs
Are exceptional items adequately accounted for and disclosed in the financial statements?
11/10/2010 Page 28
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.2b
31 December 2010 InitiaIs Date
Common omissions from smaIIer company financiaI Prepared by:
statements: An Aide Memoir. Reviewed by:
Northern IreIand version
Return to index
Yes/No/NA
InitiaIs and
Date
Programme
This is not a comprehensive discIosure checkIist. It is intended to be an aide memoir and the questions do not contain aII of the
detaiIs that are required by IegisIation or accounting standards. Practitioners shouId ensure that that they have adequate
aIternative procedures such as a fuII discIosure checkIist to ensure that financiaI statements compIy with IegisIation and
accounting standards. The aide memoir does not address the requirements of the ASB FinanciaI Reporting Standard for
SmaIIer Entities (FRSSE).
25
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
Ensure that the company's registration number is displayed in a prominent position in at least
one of the following - balance sheet, profit and loss account, directors' report, directors
remuneration report or auditor's report. (Para 22(3) Registrar Rules 2009)
Ensure that a limitation of liability agreement with the auditors, where this exists, is disclosed
in a note. (Section 538 Companies Act 2006)
Ensure that the financial statements are prepared in accordance with the Companies Act
2006.
! Operating lease commitments?
! Finance leases
! Hire purchase contracts
Have related party transactions been fully disclosed?
Have government grants been disclosed?
Have pensions costs and accruals been adequately disclosed?
Has adequate disclosure been made of
f there is an ultimate controlling party, is there adequate disclosure regarding this?
Where loan covenants have been breached, have you considered whether these loans should
be reclassified as repayable on demand? Consider whether this matter should be disclosed in
a Going Concern note.
Are prior year adjustments appropriately accounted for and disclosed in the financial
statements?
Have transactions loans and guarantees to and from directors been disclosed?
26
Have debtor balances been checked to ensure that they are not disclosed as negative
creditors and vice versa?
Has a reserves movement note been included?
Has a reconciliation of shareholders funds note been included?
t may be necessary to recognise preference shares as liabilities under FRS 25. Has this
matter been considered?
s there a note of the directors' approval of the financial statements?
Are there any post balance sheet events that require disclosure?
11/10/2010 Page 29
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 10.3
31 December 2010 InitiaIs Date
Prepared by:
FinanciaI Statements CaII-Over CheckIist Reviewed by:
Return to index
Programme CompIeted InitiaIs Date
Yes/No/NA
1 Agree the comparative figures to the previous period's signed financial statements.
2 Read or call over the financial statements in full.
3 Confirm that the name of the company in the financial statements is the registered
name of the company per company secretarial records
4 Confirm that the financial year end is correctly stated throughout the financial
statements. Where the financial period is not a year, this should be stated.
5 Check the sequence of page numbers is correct, and agree the pages to the index
or contents page.
6 Agree all details and amounts from the Directors Report to the financial
statements.
7 Has the latest version of the Audit Report been used?
8 Check all tots and cross tots in the Directors Report, the main statements the notes
thereto and the detailed profit and loss account.
9 s the Balance Sheet balanced in the current year and comparatives?
10 Check that the numerical sequence of notes is correct.
11 Agree the totals of all notes to the Balance Sheet and Profit and Loss Account and
other primary statements as applicable.
12 Check the profit/loss for the year to the reserves movement and the reserve
movement to the reserves in the Balance Sheet.
13 Agree the sales, gross profit and other expense totals from the detailed non-
statutory profit and loss account to the statutory profit and loss account.
14 Agree or reconcile staff costs and directors remuneration from the statutory
disclosures to the detailed non-statutory profit and loss account.
15 Agree the deprecation total from the fixed asset note to the statutory disclosure
note, to the detailed profit and loss account.
11/10/2010 Page 30
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A11
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
POST BALANCE SHEET EVENTS Prepared by:
Reviewed by:
Return to ndex
Audit Programme
Schedule /
Comment
nitials and
date
Schedule /
Comment
nitials and
date
Perform audit procedures designed to obtain sufficient
appropriate audit evidence that all events occurring between the
date of the financial statements and the date of the auditors
report that require adjustment of, or disclosure in, the financial
statements have been identified. These shall include the
following:
(i) reviewing procedures management has established to ensure
that subsequent events are identified;
(ii) inquiring of management and, where appropriate, those
charged with governance as to whether any subsequent events
have occurred which might effect the financial statements;
(iii) reading minutes of meetings of the entity's owners,
management and those charged with governance that have
been held after the date of the financial statements and inquiring
about matters discussed at such meetings for which minutes are
not yet available;
(iv) reviewing the entity's latest management accounts.
SA(UK&)560(6)(7)
The following additional procedures may also be considered
necessary:
(i) reviewing cash books, invoices and bank statements;
(ii) reviewing cash flows and budgets;
(iii) inquiring of the entity's legal counsel concerning litigation
and claims;
(iv) major contracts;
(v) any other sources. SA(UK&)560(7)
3 f subsequent events are identified, determine whether each
event is appropriately reflected in the financial statements in
accordance with the applicable reporting framework.
SA(UK&)560(8)
4 Request management and, where appropriate, those charged
with governance, to provide a written representation in
accordance with SA(UK&)580 that all events occurring
subsequent to the date of the financial statements and for which
the applicable financial reporting framework requires adjustment
or disclosure have been adjusted or disclosed. SA(UK&)560(9)
(See A8)
1
2
FieIdwork FinaI Review
Facts which become known to the auditor prior to the date of the auditors report but before the date the financiaI
statements are issued
11/10/2010 Page 31
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A11
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
POST BALANCE SHEET EVENTS Prepared by:
Reviewed by:
Return to ndex
Audit Programme
Schedule /
Comment
nitials and
date
Schedule /
Comment
nitials and
date
FieIdwork FinaI Review
Facts which become known to the auditor prior to the date of the auditors report but before the date the financiaI
statements are issued
f after the date of the auditors report but before the date that the
financial statements are issued a fact becomes known to the
auditor that, had it been known to the auditor at the date of the
auditors report, may have caused the auditor to amend the
auditors report, the auditor shall:
(i) discuss the matter with management and, where appropriate,
those charged with governance;
(ii) determine whether the financial statements require
amendment and, if so;
(iii) enquire how management intends to address the matter in
the financial statements. SA(UK&)560(10)
f management amends the financial statements, the auditor
shall:
(i) extend the audit procedures referred to above to the date of
the new auditors report and
(ii) provide a new auditor's report on the amended financial
statements. The new audit report shall not be dated earlier than
the date of approval of the amended financial statements.
SA(UK&)560(11)
f after the financial statements are issued a fact becomes
known to the auditor that, had it been known to the auditor at the
date of the auditors report, may have caused the auditor to
amend the auditors report, the auditor shall:
(i) discuss the matter with management and, where appropriate,
those charged with governance;
(ii) determine whether the financial statements require
amendment and, if so;
(iii) enquire how management intends to address the matter in
the financial statements. SA(UK&)560(14)
f management amends the financial statements, the auditor
shall:
(i) carry out audit procedures necessary in the circumstances of
the amendment;
(ii) review the steps taken by management to ensure that
anyone in receipt of the previously issued financial statements
together with the auditor's report thereon is informed of the
situation;
(iii) extend the audit procedures referred to above to the date of
the new auditor's report, and date the new auditors report no
earlier that the date of approval of the amended financial
statements;
(iv) provide a new auditor's report on the amended financial
statements. SA(UK&)560(15) (Northern IreIand onIy)
5
Facts which become known to the auditor after the date of the auditors report but before the date the financiaI
statements are issued
Facts which become known to the auditor after the financiaI statements have been issued
6
7
8
In the UK the detaiIed reguIations governing revised financiaI statements and directors' reports, where the revision is
voIuntary, are set out in Section 454 of the Companies Act 2006. There are no provisions in the Companies Acts of the
RepubIic of IreIand for revising financiaI statements.
11/10/2010 Page 32
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A11
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
POST BALANCE SHEET EVENTS Prepared by:
Reviewed by:
Return to ndex
Audit Programme
Schedule /
Comment
nitials and
date
Schedule /
Comment
nitials and
date
FieIdwork FinaI Review
Facts which become known to the auditor prior to the date of the auditors report but before the date the financiaI
statements are issued
9 nclude in the new or amended auditor's report an emphasis of
matter paragraph or other matters paragraph referring to a note
to the financial statements that more extensively discusses the
reason for the amendment of the previously issued financial
statements and to the earlier report provided by the auditor.
SA(UK&)560(16) (Northern IreIand onIy)
10 Consider reporting to the members' general meeting any events
not reported by management which have come to our attention
after the report was signed but before the general meeting.
SA(UK&)560(17)
CONCLUSION
Signed
Date
Reviewed
Date
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us
to conclude that any post balance sheet events, if they exist, are correctly treated in the accounts.
11/10/2010 Page 33
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 12.1
31 December 2010 InitiaIs Date
GOING CONCERN Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe /
Comment
InitiaIs Date
EvaIuate management's assessment
1 Evaluate management's assessment of the entity's ability to continue as a going
concern. SA(UK&)570(12)
2 f management's assessment of the entity's ability to continue as a going
concern covers less than twelve months from the date of the financial
statements, request management to extend its assessment period to at least
twelve months from that date. SA(UK&)570(13)
3 Where cash flows forecasts or budgets are not available, describe what
evidence is available to support the company's ability to continue as a going
concern. Retain the evidence. SA(UK&)570(13)
4 Consider whether management's assessment includes all relevant information
of which the auditor is aware as a result of the audit. SA(UK&)570(14).
Period beyond management's assessment
5 Enquire of management as to its knowledge of events or conditions beyond the
period of management's assessment that may cast significant doubt on the
entity's ability to continue as a going concern. SA(UK&)570(15)
AdditionaI audit procedures when events or conditions are identified
f conditions have been identified that may cast significant doubt on the entity's
ability to continue as a going concern, obtain sufficient appropriate audit
evidence to determine whether or not a material uncertainty exists through
performing additional audit procedures, including consideration of mitigating
factors. These shall include:
(i) requesting management to make its assessment on the entity's ability to
continue as a going concern;
(ii) evaluating managements plans for future actions in relation to its going
concern assessment. These plans may include
- reviewing cashflow, profit and other relevant forecasts with management;
- discussing the entity's latest available interim financial
statements/management accounts;
- reading the terms of loan agreements and determining whether any have been
breached;
- reviewing directors/shareholder minutes;
- inquiring of the entity's legal counsel regarding the existence of litigation and
claims and the reasonableness of managements assessments of their outcome
and the estimate of their financial implications;
- confirming the existence, legality and enforceability of arrangements to provide
or maintain financial support with related and third parties and assessing the
financial ability of such parties to provide additional funds;
- evaluating the entity's plans to deal with unfilled customer orders;
- performing audit procedures regarding subsequent events to identify those
that either mitigate or otherwise affect the entity's ability to continue as a going
concern;
- confirming the existence, terms and adequacy of borrowing facilities;
- obtaining and reviewing reports of regulatory actions; SA(UK&)570(16)
- determining the adequacy of support for any planned disposals of assets.
(iii) Where a cashflow forecast is a significant factor in considering the future
outcome of events or conditions in the evaluation of managements plans for
future actions, evaluate the reliability of the underlying data generated to prepare
the forecast and determine whether there is adequate support for the
assumptions underlying the forecast.
(iv) consider whether any additional facts or information have become available
since the date on which management made its assessment;
(v) Request written confirmations from management and, where appropriate,
those charged with governance, regarding their plans for future action and the
feasibility of these plans. SA(UK&)570(16)
6
11/10/2010 Page 34
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 12.1
31 December 2010 InitiaIs Date
GOING CONCERN Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe /
Comment
InitiaIs Date
7 Where management's assumptions include continued support by promoters,
directors or third parties and such support is important to an entity's ability to
continue as a going concern, consider requesting written confirmation from
those parties, and obtain evidence of their ability to provide such finance, and a
confirmation that they will not withdraw the finance if this would harm the
company's ability to continue as a going concern. SA(UK&)570(16)
Audit concIusions and reporting
8 Conclude whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the entity's ability to continue as a going
concern. f such an uncertainty exists appropriate disclosure of the nature and
implications of the uncertainty is necessary for the fair presentation of the
financial statements or for the financial statements not to be misleading.
SA(UK&)570(17)
9 f the period to which those charged with governance have paid particular
attention in assessing going concern is less than one year from the date of
approval of the financial statements, and those charged with governance have
not disclosed the fact, the auditor shall do so within the auditors report.
SA(UK&)570(17)
Examples of events or conditions that individually or collectively may cast
significant doubt about the going concern assumption are set out on A12.2
Use of going concern assumption but a materiaI uncertainty exists
f the use of the going concern assumption is appropriate but a material
uncertainty exists, determine whether the financial statements:
(i) adequately describe the principal events that may cast significant doubt on
the entity's ability to continue as a going concern and management's plans to
deal with these events and
(ii) disclose clearly that there is a material uncertainty that may cast significant
doubt on the entity's ability to continue as a going concern and therefore it may
be unable to realise its assets and discharge its liabilities in the normal course of
business. SA(UK&)570(18)
Best practice is that such disclosure should include the following:
A statement that the financial statements have been prepared on the going
concern basis;
A statement of the pertinent facts;
The nature of the concern;
A statement of the assumptions adopted by those charged with governance,
which should be clearly distinguishable from the pertinent facts;
(Where appropriate and practicable) a statement regarding the plans of those
charged with governance for resolving the matters giving rise to the concern;
and
Details of any relevant actions by those charged with governance.
(See also A10.2(a) and A10.2(b))
11 f adequate disclosure is made, express an unmodified opinion and include an
emphasis of matter paragraph in the auditors report. SA(UK&)570 (19)
12 f adequate disclosure is not made, express a qualified opinion or adverse
opinion, as appropriate, in accordance with SA(UK&)705. State in the auditors
report that there is a material uncertainty that may cast significant doubt about
the entity's ability to continue as a going concern. SA(UK&)570(20)
13 Ensure that the file contains an adequate record of the auditor's evaluation of
management's assessment of the entity's ability to continue as a going concern.
SA(UK&)230(8)
Use of going concern assumption inappropriate
14 f the financial statements have been prepared on a going concern basis but, in
the auditor's judgement, managements use of the going concern assumption is
inappropriate, the auditor shall express an adverse opinion. SA(UK&)570(21)
10
11/10/2010 Page 35
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 12.1
31 December 2010 InitiaIs Date
GOING CONCERN Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe /
Comment
InitiaIs Date
Management unwiIIing to make or extend its assessment
15 f management is unwilling to make or extend its assessment when requested,
consider the implications for the auditors report. SA(UK&)570(22)
Communication with those charged with governance
16 Communicate with those charged with governance events identified that may
cast significant doubt on the entity's ability to continue as a going concern. Such
communication shall include whether the event constitutes a material
uncertainty, whether the use of the going concern assumption is appropriate and
the adequacy of the related disclosures in the financial statements.
SA(UK&)570(23)
Significant deIay in the approvaI of financiaI statements
17 f there is a significant delay in the approval of the financial statements after the
date of the financial statements enquire as to the reasons for the delay.
SA(UK&)570(24)
18 f it is believed that the delay could be related to events relating to the going
concern assessment, perform additional audit procedures necessary as well as
consider the effect on the auditors conclusion regarding the existence of a
material uncertainty.(SA(UK&)570(24))
CONCLUSION
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that the accounts should / should not (delete as appropriate) be prepared on a going concern basis.
n my opinion the disclosures concerning going concern are adequate.
Signed
Date
Reviewed
Date
Chartered Accountants Ireland - All rights reserved
11/10/2010 Page 36
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 12.2
31 December 2010 InitiaIs Date
Going Concern Questionnaire Prepared by:
Reviewed by:
Return to ndex
Audit Programme PIanning
Y/N
FinaI
Y/N Comments
1 FinanciaI
1.1 Net liability or net current liability position
1.2 Fixed term borrowings approaching maturity without realistic
prospects of renewal or repayment
1.3 Evidence of bank loan covenants not been adhered to
1.4 Excessive reliance on short-term borrowings to finance long-
term assets
1.5 ndications of withdrawal of financial support by creditors
1.6 Negative operating cashflows indicated by historical or
prospective financial statements
1.7 Adverse key financial ratios
1.8 Substantial operating losses or significant deterioration in the
value of assets used to generate cash flows
1.9 Arrears or discontinuance of dividends
1.10 nability to pay creditors on due dates
1.11 nability to comply with the terms of loan agreements
1.12 Change from credit to cash on delivery transactions with
suppliers
1.13 nability to obtain financing for essential new product
development or other essential investments.
1.14 Substantial sales of fixed assets not intended to be
replaced?
1.15 Negotiating a restructuring of borrowings
1.16. Major loan repayments due or refinancing necessary
2 OperationaI
2.1 Management intentions to liquidate the entity or cease
operations
2.2 Loss of key management or staff or labour difficulties
2.3 Loss of major market, key customers, franchise, licence or
principal suppliers.
2.4 Shortage of important suppliers
2.5 Emergence of a highly successful supplier
2.6 Fundamental market or technology changes to which the
entity may be unable to adapt
2.7 Forced reduction in operations due to legislation, regulatory
action or other cases
2.8 Dependent on a few product lines where the market is
depressed
3 Other
3.1 Non-compliance with capital or other statutory requirements
3.2 Legal or regulatory proceedings against the entity, that if
successful, result in claims that the entity is unlikely to be
able to satisfy
3.3 Changes in law or regulation or government policy expected
to adversely affect the entity
3.4 Uninsured or underinsured catastrophes when they occur.
Copyrt Ch Accts re
The foIIowing are exampIes of events or conditions that, individuaIIy or coIIectiveIy, may cast significant doubt
about the going concern assumption. The Iisting is not exhaustive nor does the existence of one or more of the
items signify that a materiaI uncertainty exists.
11/10/2010 Page 37
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A 13
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
THE AUDIT REPORT Reviewed by:
Return to ndex
Audit Programme ScheduIe /
Comment
InitiaIs Date
2 The report should be presented in accordance with the recommended formats
presented in Auditing Practices Board Bulletin 2006/1 (RO) or Auditing Practices
Board Bulletin 2009/02 (UK)
3 A modified report (emphasis of matter or qualification) should be presented in
accordance with SA(UK & )705 and SA(UK&)706 and Auditing Practices
Board Bulletin 2006/1 (RO) or Auditing Practices Board Bulletin 2009/02 (UK)
4 n RO, The Companies Amendment Act 2009 was signed into law on 12 July
2009. As a result the citation "Companies Act 1963 to 2006" changes to
"Companies Act 1963 to 2009". The new citation will be reflected in the director's
report, the director's responsibilities statement, the audit report and the notes to
the financial statements in documents signed on or after 12 July 2009 regardless
of the financial period end date.
5 The Audit Report issued in relation to Northern reland companies is signed by
the Senior Statutory Auditor in his or her own name. The meaning of the term
'Senior Statutory Auditor' has the same meaning as the term 'Engagement
Partner' as used in nternational Standards on Auditing (SAs)(UK&)
6 The user auditor shall not refer to the work of a service auditor in the user
auditor's report containing an unmodified opinion unless required by law or
regulation to do so. f such reference is required by law or regulation, the user
auditor's report shall indicate that the reference does not diminish the user
auditor's responsibility for the audit opinion. SA(UK&)402(21)

CONCLUSION
am satisfied that the audit report has been correctly presented.
Signed
Date
Reviewed
Date
1 Review and assess the conclusions drawn from the audit evidence obtained as
the basis for the expression of an opinion on the financial statements.
(SA(UK&)700(7). Copyrt Ch Accts re
A6
11/10/2010 Page 38
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet A14
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Fraud Prepared by:
Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment InitiaIs Date
ProfessionaI Scepticism
1 Maintain professional scepticism throughout the audit recognising the possibility
that a material misstatement due to fraud could exist, notwithstanding the past
experience of the honesty and integrity of the entity's management and those
charged with governance. SA(UK&)240(12)
Audit FieIdwork and ConcIusion
EvaIuation of audit evidence
2 f a material misstatement is identified, evaluate whether such a misstatement is
indicative of fraud. f there is such an indication, evaluate the implications of the
misstatement in relation to other aspects of the audit, particularly the reliability of
management representations and the nature, timing and extent of other audit
procedures, recognising that an instance of fraud is unlikely to be an isolated
occurrence. Review the implications for the audit. SA(UK&)240(35)(36)(37)
3 Evaluate whether analytical procedures that are performed near the end of the
audit indicate a previously unrecognised risk of material misstatement due to
fraud. SA(UK&)240(34)
Auditor unabIe to continue the engagement
4 f as a result of a misstatement resulting from fraud or suspected fraud, the
auditor should consider its ability to continue the audit. SA(UK&)240(38)
Written representations A8
5 Obtain written representations from management and where applicable, those
charged with governance regarding fraud.
Communication to management and those charged with governance A7
6 f a fraud has been identified or information obtained that indicates that a fraud
may exist, the auditor shall communicate these matters on a timely basis to the
appropriate level of management. SA(UK&)240(40). This may be overridden by
the auditor's responsiblity to inform regulators. See below.
7 Communications to reguIatory and enforcement authorities
R1
R1
Documentation
9 Document the decisions reached during the discussion among the engagement
team members regarding the susceptibility of the entity's financial statements to
fraud, the fraud risks identified, the associated audit procedures in relation to the
fraud risks noted and the results of the audit procedures carried out.
SA(UK&)240(44)(45)
10 nclude in the audit documentation communications about fraud made to
management, those charged with governance, regulators and others.
SA(UK&)240(46)
CONCLUSION
Signed
Date
Reviewed
Date
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude that
the financial statements do not contain any material errors as a result off fraud.
8 f a fraud has been identified or is suspected, determine whether there is a
responsibility to report the occurrence or suspicion to a party outside the entity.
SA(UK&)240(43) Consider whether we have grounds for suspicion of money
laundering and the need to report in accordance with the firm's internal anti-
money laundering procedures as required by money laundering legislation. n this
context have due regard to the risk of the "prejudicing an investigation offence in
the Republic of reland or the tipping off offence in United Kingdom/Northern
reland. n the Republic of reland, ensure that due consideration has been given
to the reporting requirements of an accountant or auditor under S.59 of the
Criminal Justice (Theft and Fraud Offences) Act 2001 where he becomes aware
that theft, fraud or other related offences, as defined by that Act, may have been
committed. SA(UK&)250A(28). Copyright Chartered Accountants reland
11/10/2010 Page 39
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B1
31 December 2010
InitiaIs Date
ACCEPTANCE OF APPOINTMENT OR RE-APPOINTMENT Prepared by:
Reviewed by:
Return to ndex
Where appropriate, ensure there is sufficient
documentation on a supporting scheduIe. Yes/No/N/A
2 For new clients confirm there are no matters outstanding as regards
the appropriate procedures surrounding the professional enquiry
process with the previous auditors? SA(UK&)300(13b)
3 Agree the terms of the audit engagement with management or those
charged with governance, as appropriate. SA(UK&)210(9)
4 Does the engagement letter include representation from management
in respect of:
- Proper books of account (RO) / adequate accounting records(N)
have been maintained
- Financial Statements have been prepared in accordance with
rish/UK GAAP (or FRS if applicable)
- Adequate internal controls exist to enable preparation of financial
statements that are free from material misstatement whether due to
fraud or error
- Auditors will be provided access to all necessary information
5 Confirm management has not imposed a limitation on the scope of the
auditor's work that the auditor believes will result in disclaiming an
opinion on the financial statements. The auditor shall not accept such
a limited engagement as an audit engagement. (SA(UK&)210(7)
6 n the case of a new engagement has the previous auditor been
communicated with in accordance with relevant ethical requirements?
CompIiance with ethicaI standards
Integrity, objectivity and independence
7 Have discussions with the Ethics Partner of ethical matters where a
difficult or objective judgement is required been documented?.
ES1(23)
8 Confirm there are no ethical considerations on prior year's Schedule
A6 which should be taken into account?
9 Confirm that the firms partners or employees, including those
providing non-audit services do not take decisions that are the
responsibility of the management of the audited entity. ES1(30)(31)
10 Confirm no threats to the auditors independence have been identified
and assesed when considering whether to accept or retain the audit
engagement or to provide non-audit services to an audited entity and
when potential threats are reported? ES1(34)
11 Have any potential threats to the auditors objectivity and
independence been reduced to an acceptable level? ES1(38)(44)
12 Has the audit engagement partner documented his or her
consideration of the auditors objectivity and independence on a timely
basis? ES1(64)
You may want to ask staff to complete the Staff ndependence
Confirmation. See Appendix 4.
13 Confirm there were no direct or indirect financial interests or loans
given or business relationships held by a partner or somebody in a
position to influence the conduct and outcome of the audit or an
immediate family member of theirs? f such interests are held the
guidance in ES 2 should be adhered to. ES2
(7)(17)(23)(24)(25)(28)(29)(31)
14 Confirm there were no audit services provided to any entity or person
able to influence the affairs of the audit firm or the performance of any
engagement undertaken by the audit firm? ES2(34)
This checkIist requires to be signd-off by the engagement partner prior to audit commencement.
FinanciaI, business, empIoyment and personaI reIationships
ScheduIe / Comment
1
Before commencing, confirm whether client is required to have an
audit or whether they qualify for Audit Exemption
(If client qualifies for Audit Exemption, communicate to the client
before commencing audit work)
Audit Exemption Checklist
RO
Audit Exemption Checklist
N
11/10/2010 Page 40
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B1
31 December 2010
InitiaIs Date
ACCEPTANCE OF APPOINTMENT OR RE-APPOINTMENT Prepared by:
Reviewed by:
Return to ndex
Where appropriate, ensure there is sufficient
documentation on a supporting scheduIe. Yes/No/N/A
This checkIist requires to be signd-off by the engagement partner prior to audit commencement.
ScheduIe / Comment
1
Before commencing, confirm whether client is required to have an
audit or whether they qualify for Audit Exemption
(If client qualifies for Audit Exemption, communicate to the client
before commencing audit work)
Audit Exemption Checklist
RO
15 Confirm the audit firm has not entered into any agreement with an
audited entity whereby a partner or employee worked for a temporary
basis as if that individual were an employee of the audited entity? n
such situations the audited entity should agree that the individual
concerned will not hold a management position and acknowledges its
responsibility for supervising and directing the work. ES2(37)
16 Confirm that where a partner or employee returns from a secondment
to an audit client, that individual has not been given any role on the
audit involving any activity that he or she performed or supervised
during the loan assignment. ES2 (40)
17 n situations where a former partner in an audit firm joins the audited
entity, confirm that action has been taken to ensure that no significant
connection remains between the firm and the individual. ES2 (42)(51)
18 Where a former member of an engagement team other than partner
leaves the audit firm and within two years joins the audited entity in a
key management position confirm that the composition of the audit
team has been reassessed. ES2 (49)
19 Where a former employee of an audited entity, who was in a position
to exert significant influence over the preparation of the financial
statements, joins the audit firm, confirm that the individual shall not be
assigned to a position in which he or she is able to influence the
conduct or outcome of the audit for a period of at least two years. ES2
(57)(58)
20 Has the independence of any external consultant involved in the audit
been reviewed? Document the rationale for the conclusion reached.
ES2 (66)
Long association with the audit engagement
21 Have safeguards been applied and documented where the audit
partner/independent partner/senior audit staff have served in this role
for more than 10 years? ES3(5)(6)(7)(8)
22 Has the audit engagement been assigned sufficient partners and staff
with appropriate time and skill to perform the audit in accordance with
auditing and ethical standards? This process should be documented.
ES4 (5), SA(UK&)220(14)
23 Confirm that the audit is not undertaken on a contingent fee basis.
ES4 (10)
24 Confirm that the prior year's audit fee and the arrangements for its
payment are agreed with the audited entity before the audit firm
formally accepts its appointment as auditor in respect to the following
period. ES4 (18)(20)
25 Confirm that in respect of unlisted entities, the total fee income for
both audit and non-audit services is not regularly expected to exceed
15% of annual fee income (either of the firm or of that part of the firm
in respect of which the audit partner's profit share is calculated)
ES4(26)(27). Where it exceeds this limit, the firm shall resign or not
stand for reappointment.
26 Where it is expected that the total fees for both audit and non audit
services receivable from an audited entity and its subsidiaries audited
by the firm will regularly exceed 10% of the annual fee income of the
audit firm or the part of the firm by reference to which the audit
engagement partner's profit share is calculated, but will not exceed
15%, has the audit engagement partner disclosed that expectation to
the ethics partner and to those charged with governance of the
audited entity? n such instances the firm shall arrange an external
independent quality control review of the audit engagement to be
undertaken before the auditor's report is finalised. ES4 (33)
Fees, remuneration and evaIuation poIicies, Iitigation, gifts and hospitaIity
A4
11/10/2010 Page 41
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B1
31 December 2010
InitiaIs Date
ACCEPTANCE OF APPOINTMENT OR RE-APPOINTMENT Prepared by:
Reviewed by:
Return to ndex
Where appropriate, ensure there is sufficient
documentation on a supporting scheduIe. Yes/No/N/A
This checkIist requires to be signd-off by the engagement partner prior to audit commencement.
ScheduIe / Comment
1
Before commencing, confirm whether client is required to have an
audit or whether they qualify for Audit Exemption
(If client qualifies for Audit Exemption, communicate to the client
before commencing audit work)
Audit Exemption Checklist
RO
27 Confirm that there is no significant ongoing or probable litigation
between the auditor and the audited entity. n instances where there is
such litigation, the audit firm should not continue with or not accept the
audit engagement. ES4 (41)
28 Have the non-audit services that have been provided to the audited
entity been documented? ES5(11)
29 Has it been deemed that a reasonable and informed third party would
regard the objectives of the proposed non-audit service engagement
as being consistent with the objectives of the audit of the financial
statements? f not, the auditor shall either not undertake the non-audit
service engagement or not accept or withdraw from the audit
engagement. ES5(13)
Confirm that there are no actual or potential conflicts of interest or any
other reason why our objectivity and independence may be impaired?
Document any such considerations and any safeguards applied.
Consider the following
A self-interest threat.
A self-review threat.
A management threat.
An advocacy threat.
A familiarity threat.
An intimidation threat.
Consider the following
nternal audit services ES5(44)
nformation technology services ES5(52)
Valuation services ES5(63)
Tax services ES5(72)(74)(76)(82)
Litigation support services ES5(88)
Legal services ES5(91)
Recruitment and remuneration services
ES5(93)(95)(99)
Corporate finance services ES5(109)
Transaction-related services ES5(119)
Accounting services ES5(127)
Where the audit firm has had a significant involvement in assisting the
client prepare the financial statements, consider using the appropriate
safeguard of "informed management ES5(26). This could be
evidenced by, for example, having a representative of the client's
senior management sign off various matters involving subjective
judgements made by the auditors e.g. significant journal entries,
corporation tax computations, VAT and PAYE workings (not an
exhaustive list) and any other matters involving accounting expertise
but for which the management must acknowledge ultimate
responsibility.
31 Has it is deemed that no appropriate safeguards are available to
eliminate or reduce to an acceptable level the threats to the auditors
objectivity, including any perceived loss of independence? n such
instances the firm shall either not undertake the non-audit service
engagement or not accept or withdraw from the audit engagement.
ES5(33)
30
11/10/2010 Page 42
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B1
31 December 2010
InitiaIs Date
ACCEPTANCE OF APPOINTMENT OR RE-APPOINTMENT Prepared by:
Reviewed by:
Return to ndex
Where appropriate, ensure there is sufficient
documentation on a supporting scheduIe. Yes/No/N/A
This checkIist requires to be signd-off by the engagement partner prior to audit commencement.
ScheduIe / Comment
1
Before commencing, confirm whether client is required to have an
audit or whether they qualify for Audit Exemption
(If client qualifies for Audit Exemption, communicate to the client
before commencing audit work)
Audit Exemption Checklist
RO
32 Have those charged with governance been appropriately informed, on
a timely basis, of all significant facts and matters that bear upon the
auditor's objectivity and independence, related to the provision of non-
audit services, including safeguards put in place? ES5 (35)
am satisfied that:
Audit Engagement Partner
Date
Ethics Partner (if appropriate)
Date
am satisfied that there are no reasons why we should not accept appointment/re-appointment as auditors to
this client.
All members of the engagement team have complied with the APB Ethical Standards and Chartered
Accountants reland's Ethical Guide. SA(UK&)220(9);
have documented all the threats to independence and objectivity, and safeguards used; and
11/10/2010 Page 43
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B1.1
31 December 2010 Audit MateriaIity
0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
AUDIT PLANNING CHECKLIST Reviewed by:
Return to ndex
Programme Tick if
CompIeted
1 Draft the Audit Planning Memorandum
2 Draft the budget for the audit.
3 Ensure adequate time available to meet the following
deadlines:
- Annual Return Date (RO) / Filing date (within 9 months of
financial period end) (N)
- Communication of Audit Plan on.
- Management Representation Letter Deliverable date..
- Bank confirmation letters sent out on..
- Solicitors Letters sent out on.
- Debtors Circularisations sent out on.
- Stocktake attendance required on..
- Planned Financial Statement Sign off Date...
- Planned Audit Report Date.
4 Confirm the classification of the company as small, medium
or large in accordance with the Companies Acts 1963 - 2009
(RO) or Companies Acts 2006 (N).
5 Confirm other deadlines, such as corporation tax filing and
deadlines imposed by bankers or the client. Ensure that
there is adequate time to meet these deadlines. (See the
Audit Planning Memorandum)
6 Review last year's file and bring forward information of
continuing relevance. (See the Audit Planning
Memorandum)
8 Communicate with those charged with governance the
responsibilities of the auditor in relation to the financial
statements audit including that the auditor is responsible for
forming and expressing an opinion on the financial
statements that have been prepared by management with
the oversight of those charged with governance and the
audit of the financial statements does not relieve
management or those charged with governance of their
responsibilities. SA(UK&)260(14)
Debtors Circularisation
Many of these points are covered in the Pro-forma Audit PIanning Memorandum
ScheduIe/ Comment
Audit Planning Memorandum
- Client Work Programme delivered to Client on..
Example Client Work
Programme
Engagement terms have been agreed SA(UK&)210(9). The
terms of the audit engagement shall be recorded in an audit
engagement letter or other suitable form of written
agreement. These terms shall include the objective and
scope of the audit, the responsibilities of the auditor, the
responsibilities of management, the identification of the
applicable financial reporting framework and reference to the
expected form and content of any reports to be issued by
the auditor and a statement that there may be circumstances
in which a report may differ from its expected form and
content. SA(UK&)210(10). See also B1.
7
Bank Confirmations
Solicitors Letter
Stocktake Attendance
11/10/2010 Page 44
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B1.1
31 December 2010 Audit MateriaIity
0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
AUDIT PLANNING CHECKLIST Reviewed by:
Return to ndex
Programme Tick if
CompIeted
Many of these points are covered in the Pro-forma Audit PIanning Memorandum
ScheduIe/ Comment
Audit Planning Memorandum 9 Communicate with those charged with governance an
overview of the planned scope and timing of the audit.
SA(UK&)260(15)
10 Communicate with those charged with governance the form,
timing and expected general content of communications.
SA(UK&)260(18)
11 Adequate "know your client checks of this client have been
carried out to comply with anti-money laundering legislation.
The assignment team should be aware of the firm's
responsibility under anti-money laundering legislation.
12 Carry out a company search.
13 Schedule and hold pre audit meetings with the client. Minute
these meetings.
14 f the client carries on a regulated business, prepare/obtain a
suitable work programme to cover the professional and
statutory requirements.
15 Schedule and hold the Audit Team Meeting. This meeting
should be attended by the Responsible ndividual (usually
the audit partner). The draft audit plan should be updated,
circulated and read by all team members before this
meeting. The plan should form the basis for the agenda of
the meeting. SA(UK&)300(5)
16 Following the Audit Team Meeting, finalise the Audit
Planning Memorandum, the assignment budget and the
timetable.
17 Update and change the overall audit strategy and audit plan
as necessary during the course of the audit as a result of
unexpected events or changes in audit evidence. These
changes are appropriately documented. SA(UK&)300(10)
18 f the work of an expert is used the auditor shall evaluate this
work. SA(UK&)500(7)(8)
Fraud (See aIso the Audit PIanning Memorandum)
Fraud: Discussion among the engagement team
19 Discuss with other team members how and where the
entity's financial statements may be susceptible to material
misstatement due to fraud including how the fraud may
occur. SA(UK&)240(15)
Fraud: Management and others within the entity
Discuss with management and obtain an understanding of:
(a) management's assessment of the risk that the financial
statements may be materially misstated due to fraud;
(b) management's process for identifying and responding to
the risks of fraud in the entity, including any specific risks of
fraud that management has identified or account balances,
classes of transactions or disclosures for which a risk of
fraud is likely to exist;
20
Example of a Client Fraud
Questionnaire
Audit Planning Memorandum
Using the Work of An Auditors
Expert
11/10/2010 Page 45
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B1.1
31 December 2010 Audit MateriaIity
0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
AUDIT PLANNING CHECKLIST Reviewed by:
Return to ndex
Programme Tick if
CompIeted
Many of these points are covered in the Pro-forma Audit PIanning Memorandum
ScheduIe/ Comment
Audit Planning Memorandum
(c) management's communication, if any, to those charged
with governance regarding its process for identifying and
responding to the risks of fraud in the entity;
(d) management's communication, if any, to employees
regarding its views on business practices and ethical
behaviour.SA(UK&)240(16)(17)
(e) Whether they have any knowledge of any actual or
suspected/alleged fraud affecting the entity.
SA(UK&)240(18)(19)(21)
21 Review the entity's revenue recognition procedures and
controls thereon and ensure tests of revenue are completed
to ensure that revenue is appropriately stated. Where it is
deemed that there are no risks of fraud in revenue
recognition, document the rationale for such a conclusion.
SA(UK&)240(26)(27)
Other information
22 Evaluate whether unusual or unexpected relationships, that
have been identified in performing analytical procedures or
other audit procedures, may indicate risks of material
misstatement due to fraud. SA(UK&)240(22)(23)
Identification and assessment of the risks of materiaI
misstatement due to fraud (See the Audit PIanning
Memorandum)
23 dentify and assess the risk of material misstatement due to
fraud. SA(UK&)240(24)(25)
Audit procedures responsive to risks reIated to management
override of controIs (See the Audit PIanning Memorandum)
Design and perform audit procedures to:
(a) Test the appropriateness of journal entries recorded in
the general ledger and other adjustments made in the
preparation of the financial statements;
(b) Review accounting estimates for biases;
(c) For significant transactions that are outside the normal
course of business, evaluate whether the business rationale
of the transactions suggests that they may have been
entered into to engage in fraudulent financial reporting or to
conceal misappropriation of assets
SA(UK&)240(32)
25 Determine whether, in order to respond to the identified risks
of management override of controls, additional audit
procedures need to be performed. SA(UK&)240(33)
26 Determine overall responses as to how the identified fraud
risks will be addressed in the audit. These responses may
include changes to the assignment and supervision of staff,
increased unpredictability in the selection of audit
procedures and reviewing accounting policies and complex
transactions. SA(UK&)240(28)(29)(30)
24
20
11/10/2010 Page 46
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet B2
31 December 2010
Return to index
Audit PIanning Memorandum
An audit pIanning memorandum shouId be prepared in Word, ExceI or simiIar. PIease
see the word document incIuded on your CD. The guidance in this word document may
be used as a basis for preparing an Audit PIanning Memorandum, taiIored as
appropriate to the particuIar audit assignment. It is recommended that the audit
pIanning memorandum is prepared using the headings and content given in this word
document.
See Word Document Attached at Working Paper Reference:
Insert Working Paper Reference Here
Chartered Accountants Ireland - All rights reserved
11/10/2010 Page 47
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B3
31 December 2010
MATERIALITY Return to ndex
Audit Programme InitiaIs Date
1 Determine materiality for the financial statements as a
whole. SA(UK&)320(10) (See below)
2
Determine performance materiality for purposes of
assessing the risks of material misstatement and
determining the nature, timing and extent of further audit
procedures. SA(UK&)320(11) (See below)
3
Determine specific materiality where relevant. (See
definition above) (See below)
4 Document the factors considered for determining
materiality:
(a) Materiality for the financial statements as a whole;
SA(UK&)320(14a)
(b) Materiality levels for particular classes of transactions,
account balances and disclosures (Specific Materality - see
definition above); SA(UK&)320(14b)
(c) Performance materiality; SA(UK&)320(14c)
(d) Any revision of (a) to (c) as the audit progressed.
SA(UK&)320(14d)
5
Revise materiality for the financial statements as a whole
(and, if applicable, the materiality level or levels for
particular transactions, account balances or disclosures) in
the event of becoming aware of information during the audit
that would have caused the auditor to have determined a
different amount (or amounts) initially. SA(UK&)320(12)
6
Determine whether it is appropriate to revise the nature,
timing and extent of the audit procedures in light of the
revised materiality as noted above in 5. SA(UK&)320(13)
This schedule is intended to assist the auditor in establishing a level of materiality for planning purposes, and
recording the reasons why that planned level of materiality was selected. The level of materiality used to
evaluate the results of tests and especially at the financial statements level must always be a matter for the
auditor's judgement. Where appropriate, separate materiality calculations can be prepared for the profit and
loss account and balance sheet.
Audit PIanning
Determining materiaIity invoIves the exercise of professionaI judgement. A percentage is often appIied to a
chosen benchmark as a starting point in determining materiaIity for the financiaI statements as a whoIe.
If, in the specific circumstances of the entity, there is one or more particuIar cIasses of transactions, account
baIances or discIosures for which misstatements of Iesser amounts than materiaIity for the financiaI
statements as a whoIe couId reasonabIy be expected to infIuence the economic decisions of users taken on the
basis of the financiaI statements, the auditor shaII aIso determine the materiaIity IeveI or IeveIs to be appIied to
those particuIar cIasses of transactions, account baIances or discIosures. (Specific MateraIity)
PIanning the audit soIeIy to detect individuaIIy materiaI misstatements overIooks the fact that the aggregate of
individuaIIy immateriaI misstatements may cause the financiaI statements to be materiaIIy misstated, and
Ieaves no margin for possibIe undetected misstatements. Performance materiaIity is set to reduce to an
appropriateIy Iow IeveI the probabiIity that the aggregate of uncorrected and undetected misstatements in the
financiaI statements exceeds materiaIity for the financiaI statements as a whoIe.
ScheduIe / Comment
Audit FieIdwork
11/10/2010 Page 48
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B3
31 December 2010
MATERIALITY Return to ndex
ActuaI Estimated ActuaI
This Year This Year Last Year
ActuaI Estimated ActuaI
This Year This Year Last Year
C C C
Profit before tax, after adjusting for exceptionaI items
and directors' bonuses:
% thereof
Turnover:
Net Assets:
Audit materiaIity
Performance materiaIity
Specific materiaIity (see definition above)
CIearIy TriviaI (Amounts that will not be further
investigated)
Specific materiality (see definition above)
Clearly Trivial
Prepared by
Date
Reviewed by
Date
The above materiality levels were revisitied on audit completion. The following was noted:
Prepared by
Date
Reviewed by
Date
% thereof
% thereof
MateriaIity Determination
Justification of audit materiality
Justification of performance materiality
11/10/2010 Page 49
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet B4
31 December 2010
Audit MateriaIity 0
Performance MateriaIity 0
Opening Balances/Comparatives InitiaIs
Prepared by:
Reviewed by:
Return to ndex
Audit Programme
ScheduIe/ Comment
1 Obtain a copy of the opening trial balance and reconcile to the prior
period's financial statements
2 Perform checks to ensure that the prior periods closing balances have
been correctly brought forward and comply with rish/UK GAAP (or FRS
if applicable)
3 Ascertain the consistency of accounting policies, where there are
changes - check they are appropriate, have been properly accounted for
and are adequately presented and disclosed
4 Where there were issues noted in the prior period (i.e. report qualified -
refer to Audit Planning Memorandum or update if necessary), consider
whether this has been resolved in the current period
CompIete remainder beIow onIy if cIient is new otherwise mark not-
appIicabIe:
5 Where the client is new, perform tests to obtain reasonable assurance
that the opening balances do not contain material misstatements that
impact on the current years financial statements this may involve
reviewing the past auditors working papers (if access can be gained),
prior year signed audit report and financial statements, etc.
6 Review prior year audit opinion and consider implications (in accordance
with SA 510) on the current year audit in respect of any:
(a) Limitation of scope
(b) Emphasis of Matter
(c) Adverse Opinion
(d) Any other modification
7 Where the client is new, and no audit has occurred in the past, tests are
required to obtain reasonable assurance that the opening balances are
free from material misstatement.
8 f sufficient appropriate audit evidence regarding the opening balances
cannot be obtained the auditor shall express a qualified audit opinion or
disclaim an opinion on the financial statements, as appropriate, in
accordance with SA(UK&)705. SA(UK&)510(10)
9 f the prior period's financial statements were unaudited, state in an
other matter paragraph in the auditor's report that the corresponding
figures are unaudited. This does not relieve the auditor of the
requirement to obtain sufficient appropriate audit evidence that the
opening balances do not contain material misstatements that materially
affect the current period's financial statements. SA(UK&)710(14)
ConcIusion
1
2
3
Name: Accountant in Charge
Date
Name Reviewer
Date
Subject to matters for attention of reviewer, have obtained reasonable assurance that opening balances
Are completely and accurately recorded.
Are correctly stated in the financial statements.
Are adequately disclosed in the financial statements in accordance with generally accepted
accounting principles, consistently applied.
11/10/2010 Page 50
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B5
31 December 2010 InitiaIs Date
PLANNING Prepared by:
Audit Exemption - RepubIic of IreIand Companies Reviewed by:
Return to ndex
Audit Programme
Yes/No/NA
For the current and previous year all of the following must apply
Turnover must not be more than C7,300,000* on an annualised basis
The company must have a gross balance sheet total of not more than
C3,650,000*
The company must have fifty staff or fewer
Confirm that the company is not a subsidiary or a parent undertaking
Check that the annual returns were filed on-time last year and will be filed
on time this year
The company is not a public limited company
The company is not a company limited by guarantee**
The company is not an unlimited company
The company is not an investment business company or insurance broker
The company is not a bank or a company of the type listed in the Second
Schedule of the Companies Act No 2 1999
2 There are no audit requirements of third parties e.g. bankers:
3 The Memorandum and Articles of the company allow audit exemption
4 Shareholders owning in excess of 10% of the company have not requested
that an audit take place, within the previous year or up to one month before
the end of the current year.
The company and the auditor have completed appropriate documentation
required by company law such as:
Minutes of Directors Meeting held during the year when exemption is claimed.
This must be done every year.
Notice of removal of auditor in first year.
ConcIude: SeIect one of the foIIowing:
The company was audit exempt last year and can claim audit exemption this
year;
The company can avail of audit exemption and has claimed it this year;
The company cannot avail of audit exemption;
The company could avail of audit exemption but is choosing not to avail of the
exemption.
ConcIusion
Name:
Accountant in Charge
Date
Name Reviewer
Date
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude on the
company's eligability to obtain audit exemption.
* Where in doubt, you should always refer to the relevant legislation within the Companies Acts 1963 to 2009.
** The exemption is not available to companies that are outside of the scope of the Companies (Amendment) Act 1986.
Therefore companies not trading for the acquisition of gain by the members including most companies limited by
guarantee cannot avail of audit exemption.
1. Confirm that the client company is entitled to avail of audit exemption.
Consider company law requirements and other factors including the following:
Reference (where relevant)
5
11/10/2010 Page 51
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet
B5.1
31 December 2010
InitiaIs Date
PLANNING Prepared by:
Audit Exemption - Northern IreIand Companies Reviewed by:
Return to ndex
Audit Programme
Yes/No/NA
(b) Turnover must not be more than 6,500,000 on an annualised basis.
(c) The company must have a gross balance sheet total of not more than
3,260,000.
(d) The company is not a member of an ineligible group. The members of a
group qualify for exemption if the group qualifies under the Companies Act 2006
as a small group, the consolidated ('net') turnover of the group is less than
6.5million (or the 'gross' turnover before consolidation adjustments of the
members is less than 7.8million) and the consolidated ('net') balance sheet
total of the group is not more than 3.26million (or 3.9million 'gross' before
consolidation adjustments).
(e) A company is illegible if it undertakes regulated investment activities,
including being: authorised insurance companies;
banking companies;
e-money issuers;
investment firms covered by the nsurance Services Directive;
UCTs management companies (UCTs ~ undertakings for the collective
investment of transferable securities);
2 There are no audit requirements of third parties e.g. bankers:
3 The Memorandum and Articles of the company allow audit exemption
4 Shareholders owning in excess of 10% of the company have not requested that
an audit take place.
5 Section 475 of the Companies Act 2006 is complied with. This states that a
company is not entitled to exemption unless its balance sheet contains a
statement by the directors to the effect that the members have not required the
company to obtain an audit of its accounts for the period in question in
accordance with section 476, the directors acknowledge their responsibilities for
complying with the requirements of this Act with respect to accounting records
and the preparation of accounts and the balance sheet contains a statement by
the directors that the company is entitled to the exemption to produce audited
accounts .
Audit Exemption: The following steps are suggested if you have an audit client
that becomes eligible for audit exemption. The steps are set out on the basis
that it may be more convenient for the auditor to resign. Alternatively, if the
company decides to remove the auditor, then it should follow the provisions of
Section 510 of the Companies Act 2006.
a) Convene and hold a directors meeting where it is agreed by the directors that
the company will fulfil the conditions of Subsection 2 of Section 477 of the
Companies Acts 2006 relating to the exemption from audit for small companies;
b) The company secretary should write to the auditors to notify them of the
decision to avail of audit exemption. t is suggested that a copy of the board
minute should be enclosed with the letter;
c) The auditors should send the notice of resignation letter to the company
within 14 days and to the Registrar of Companies within a further 14 days. f
there are matters in connection with their registration that the auditors want to
bring to the attention of the members, then the auditors and the company
should follow the requirements of Section 518 of the Companies Act 2006.
ConcIude: SeIect one of the foIIowing:
The company was audit exempt last year and can avail of audit exemption this
year;
The company can avail of audit exemption this year;
The company can not avail of audit exemption;
The company could avail of audit exemption but is choosing not to avail of the
exemption.
ConcIusion
Name: Accountant in Charge
Date
Name Reviewer
Date
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude on the company's eligability to obtain audit exemption.
(a) For the current and previous year the company qualifies as "small" - that is,
it meets two out of three out of turnover less than 6,500,000, balance sheet
total less than 3,260,000 and employees less than 50,
OR the company is dormant.
Reference (where relevant)
6
1. Confirm that the client company is entitled to avail of audit exemption. Consider
company law requirements and other factors including all the following:
11/10/2010 Page 52
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet C1
31 December 2010 InitiaIs Date
Prepared by:
Internal Control and Accounting Systems Reviewed by:
Return to ndex
Accounts Preparation
() Briefly describe how the financial statements are prepared.
(ii) What controls exist in respect of the preparation of year end journals and
accounting estimates?
Assessment of Accounting System
1. Document the client's internal control and accounting system in the record of
permanent information?
2. Record our evaluation of the adequacy of the client's internal control and
accounting systems as a basis for preparation of accounts and the audit
procedures to be carried out to address the risks from deficiencies identified.
11/10/2010 Page 53
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet C1
31 December 2010 InitiaIs Date
Prepared by:
Internal Control and Accounting Systems Reviewed by:
3. n situations where internal controls are being relied upon, test these controls.
nternal controls are being relied upon in the following areas:
ConcIusion
Name: Accountant in Charge
Date
Name
Date
nternal controls have been reviewed, documented, associated risks identified, and audit procedures planned to deal with such risks.
Reviewer
11/10/2010 Page 54
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet C2
31 December 2010 InitiaIs Date
Prepared by:
Maintenance of Books and Records Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Have the company's management or those charged with governance:
(a) acknowledged their responsibility for maintaining proper books of
account(RO)/adequate accounting records(N); and
(b) confirmed that the company has kept proper books of account/adequate
accounting records throughout the period in the letter of representation?
Ensure that the accounting system is documented in the record of
permanent information.
Were the books of account/accounting records kept in such a manner that the
financial position of the company could have been determined with reasonable
accuracy at any time?
Note: The production of periodic management accounts of reasonable quality
will normally be sufficient evidence. Where periodic management accounts
have not been prepared we should set out the factors which demonstrate that
the company has complied with this requirement. Review the notes of the
system as part of the planning and update as necessary.
3 Do the books of account/accounting records contain the necessary information
to enable the balance sheet and profit and loss account (including related notes
and disclosures which might impact on the state of affairs) to be prepared in
compliance with the underlying legislation? Perform walk-through tests to
confirm that the system operates as recorded.
4 Were there any undue delays in carrying out the audit due to omissions or
deficiencies in the books of account/accounting records, or inability to gain
access to part of the books of account? For all audit areas where control
reliance is other than high, plan and perform tests of control as a basis for
reduced substantive testing.
5 Were there any accounting breakdowns during the period? Record deficiencies
in the system in order to communicate them to the client.
6 Were there any instances of undue delays in processing transactions? Ensure
that the accounting system has been assessed within the audit working papers.
7 Were there any audit adjustments to the draft financial statements which might
suggest that transactions were not recorded in a timely manner?
8 Were the entries to the books of account/accounting records made on a basis
consistent with the previous period?
9 Do receipt and payment records, with related vouchers, adequately explain the
nature of the company's transactions?
10 Do the books of account/accounting records record the company's assets and
liabilities in sufficient detail?
11 Were details of suppliers and description of goods and details of customers
and description of goods (except for ordinary retail cash sales) recorded in the
books of account/accounting records (if the company's business involved
dealing in goods)?
12 Has a record of invoices relating to purchases of goods and sales of goods
(except for ordinary retail cash sales) been kept (if the company's business
involved dealing in goods)? (A cross reference from the books of account to the
invoice will suffice for this purpose).
13 Have records of stock takes supporting the year-end stock figure, or supporting
continuous stock records, been kept?
1
2
11/10/2010 Page 55
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet C2
31 December 2010 InitiaIs Date
Prepared by:
Maintenance of Books and Records Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
114 Has a record of services provided and of invoices for such services been kept?
(if the company's business involved the provision of services).
15 Do journal entries with supporting vouchers correctly record and explain the
underlying transactions?
16 Do the books of account/accounting records correctly record and explain the
transactions of the company?
17 Consider the effect of any of the answers above on our opinion as to whether
proper books of account/adequate accounting records were maintained by the
company and record your conclusion.
Where we form the opinion that proper books of account/adequate
accounting records were not maintained:
18 Advise the company in writing accordingly, with reasons for conclusions.
19 n the Republic of reland, notify the Director of Corporate Enforcement of our
opinion that the company, or its directors contravened Section 202 of the
Companies Act, 1990. (See also R1)
20 Under Section 194 of the Companies Act 1990 (RO only) if the auditor does
not receive confirmation, within seven days of notifying the company (step 18
above), from the company's directors that they have taken the necessary steps
to remedy the problem giving rise to our negative opinion on the books of
account, he shall notify the Registrar of Companies.
Amend the audit report to include our opinion that proper books of account
/adequate accounting records were not maintained.
Note: In the event that the opinion is to be qualified, appropriate consultation
required by the firm's procedures should be completed.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude that
proper books of account/adequate accounting records have been maintained.
21
11/10/2010 Page 56
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet D-
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Prepared by:
Intangible Fixed Assets Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
Patents GoodwiII
DeveIopment
Costs TotaI
C C C C
Cost:
01 January 2010 0 0 0 0
Additions 0 0 0 0
Disposals 0 0 0 0
31 December 2010 0 0 0 0
Amortisation:
01 January 2010 0 0 0 0
Provided during the year 0 0 0 0
Disposals 0 0 0 0
31 December 2010 0 0 0 0
Net book vaIue:
31 December 2010 0 0 0 0
31 December 2009 0 0 0 0
11/10/2010 Page 57
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet D1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Intangible Fixed Assets Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
Obtain or prepare a lead schedule and agree to balance sheet and ensure that
it provides sufficient audit trail.
D-
(i) Agree to nominal ledger;
(ii) Agree opening balances to last year's accounts; and
(iii) Prepare a commentary explaining the composition of the intangible fixed
asset balance and comparing it with prior periods and our expectations.
Obtain or prepare separate schedules of:
(i) additions in each category; and
(ii) disposals in each category.
4 Vouch documentation regarding additions and disposals.
5 Consider amortisation rates in light of events during the period. Compare with
accounting policies. Consider whether adequate.
6 nspect or obtain confirmation of documents of title (company's name on the
title documents?) e.g. purchase details for patents, and ensure that the entity
has valid title.
7 Review the basis of carrying forward expenditure and ensure that it is
reasonable, consistently applied and in accordance with the relevant
accounting standards. Obtain updated income and profit projections for, for
example, research and development and similar types.
8 Enquire of management whether or not they have considered carrying out an
impairment review. Consider whether assets are impaired in value and whether
an impairment review is required.
9 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
10 Additional tests/test areas to ensure planning criteria and audit objectives have
been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing tests are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude that
intangible fixed assets are not materially mis-stated in the accounts.
2
3
11/10/2010 Page 58
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet E-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Tangible Fixed Assets Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
FreehoId Land
& BuiIdings
PIant &
Machinery Motor VehicIes TotaI
C C C C
Cost:
01 January 2010 0 0 0 0
Additions 0 0 0 0
Revaluation 0 0 0 0
Disposals 0 0 0 0
31 December 2010 0 0 0 0
Depreciation:
01 January 2010 0 0 0 0
Provided during the year 0 0 0 0
Revaluation 0 0 0 0
Disposals 0 0 0 0
31 December 2010 0 0 0 0
Net book vaIue:
31 December 2010 0 0 0 0
31 December 2009 0 0 0 0
11/10/2010 Page 59
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet E1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Tangible Fixed Assets Reviewed by:
Return to ndex
Audit Programme
ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
Obtain or prepare a lead schedule, agree to balance sheet and provide
sufficient audit trail:
E-
(i) agree to nominal ledger;
(ii) agree opening balances to last year's accounts; and
(iii) prepare a commentary explaining the composition of the fixed asset
balance and comparing the balance with prior periods and our expectations.
Obtain or prepare separate schedules of:
(i) additions within each category; and
(ii) disposals within each category.
4 Vouch as appropriate the additions and disposals.
5 Consider possible unrecorded disposals (e.g. assets scrapped).
6 Enquire if any fixed assets have been improved or constructed during the
period.
7 Ensure that all revaluations are accounted for correctly. Ensure that historical
cost information is available for disclosure purposes.
8 Enquire of management whether or not they have considered carrying out an
impairment review. Consider whether assets are impaired in value and whether
an impairment review is required.
9 Ascertain location of title deeds and inspect or confirm details with third party.
f these are inspected on a rotational basis, check and note the last year that
these were inspected.
10 nspect vehicle registration documents and agree details to company records
and ensure that vehicles are registered in the company's name.
11 Physically inspect a sample of items contained in fixed assets and document
on file.
12 Consider treatment of any grants received or receivable.
13 Consider the accounting treatment of any self-built assets.
14 Review nominal ledger accounts for repairs and renewals (or similar) for items
which should have been capitalised.
15 Review lease costs expensed and consider whether the accounting treatment
is correct.
16 Obtain or prepare a schedule of net book value and depreciation of assets held
under hire purchase contracts and finance leases.
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing tests are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
2
3
11/10/2010 Page 60
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet E1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Tangible Fixed Assets Reviewed by:
Return to ndex
Audit Programme
ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing tests are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
(a) Consider reasonableness of provision of all depreciation with regard to:
(i) Estimated useful lives; and
(ii) Residual value.
(b) Test check depreciation calculations.
(c) Agree total to profit and loss account charge.
(d) Challenge estimates made by management.
18 Review relevant documentation to ensure that any capital commitments have
been identified. (eg board minutes, after-date review, and enquiries) (See also
Creditors Programme)
19 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
20 Additional tests/test areas to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude that
tangible fixed assets are not materially mis-stated in the accounts.
17
11/10/2010 Page 61
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet F-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Investments Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
UnIisted
investments Listed investments TotaI
C C C
Cost
01 January 2010 0 0 0
Additions 0 0 0
Disposals 0 0 0
31 December 2010 0 0 0
Provision for diminution in vaIue
01 January 2010 0 0 0
Additions 0 0 0
Disposals 0 0 0
31 December 2010 0 0 0
Net book vaIue
31 December 2010 0 0 0
31 December 2009 0 0 0
11/10/2010 Page 62
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet F1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Investments Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
Obtain or prepare lead schedules and agree to balance sheet, distinguishing
between:
F-
(i) investments listed on a stock exchange;
(ii) other investments; and
(iii) unlisted investments.
Ensure that the schedule also correctly distinguishes subsidiaries, associated
companies and joint ventures and that it provides a sufficient audit trail. Agree
to nominal ledger.
3 Obtain or prepare separate schedules of additions and disposals and vouch as
appropriate confirming that recognition has taken place in the correct period.
4 Check with an authoritative source that all bonus and rights issues have been
accounted for.
5 Obtain and disclose market value at balance sheet date of all listed
investments. Agree valuation of investments to an authoritative source.
6 Confirm that the book value/carrying value of unIisted investments is not
stated in excess of net realisable value. Obtain supporting evidence for the
carrying value by obtaining and reviewing recent financial statements for the
investment.
7 Vouch profits and losses on disposals confirming that recognition has taken
place in the correct period.
8 Consider completeness of investment income and that cut-off has been
correctly applied.
9 Consider permanent diminution in value of investments.
10 Examine share certificates to ensure good title (and test a sample if
appropriate). Obtain confirmation from third parties holding certificates of title,
details of joint venture arrangements etc.
11 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards
12 Ensure investments are correctly analysed between current and fixed asset
investments.
13 Additional tests/test areas to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
2
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing tests are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
Subject to the matters noted for the reviewer in my opinion sufficient audit assurance has been obtained to enable us to conclude
that investments are not materially mis-stated in the accounts.
11/10/2010 Page 63
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet G-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Stocks And Work In Progress Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
31 December 2010 31 December 2009
C C
Raw materials and consumables 0 0
Work in progress 0 0
Finished goods and goods for resale 0 0
0 0
11/10/2010 Page 64
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet G1
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Prepared by:
Stock and Work in Progress Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Obtain or prepare lead schedules. G-
(i) Distinguish between raw materials and consumables, work in progress, and
finished goods and goods for resale.
(ii) Agree to balance sheet.
3 Prepare a commentary explaining the composition of stock balances and
comparing them with prior periods and our expectations. nvestigate significant
changes in stock levels and values.
4 Obtain sufficient appropriate audit evidence regarding the existence and
condition of stock. SA(UK&)501(4)
5 Complete physical attendance report and trace all items selected at the stock
take to the final stock sheets. (See G2)
6 Select a sample of items from the final stock sheets and trace back to the
rough stock sheets. (See G2)
7 Test check pricing of final stock sheets by vouching a sample to purchase
invoices or costing records.
8 Test check additions and extensions of the final stock sheets.
9 Ascertain and record basis of valuation of work in progress.
Test check valuation of work in progress and ensure that:
(i) Material costs are correctly recorded;
(ii) The allocation of labour hours is correct;
(iii) The allocation of overheads is correct; and
(iv) The accounting for turnover and attribution of profit in long term work in
progress is appropriate.
11 Consider the extent and implication of goods in stock subject to reservation of
title.
12 Consider treatment of slow moving and obsolete stocks. Ensure that provisions
are adequate and consistent. Challenge the estimation techniques used by
management in the calculation of the provision. Consider the outturn of the
provision in previous years.
13 Ensure that stock and work in progress are valued at the lower of cost and net
realisable value. n reviewing NRV, consider the saleability of stock. Consider
overall stock levels and levels of key items. Review post year end sales of key
stock items.
G2
G2
16 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
O1
N1
H1
J1
G2
10
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing steps are suggestions onIy and shouId be
removed or added to as necessary to address the risks of materiaI misstatement identified at the risk assessment
stage.
14
Where stock is held by third parties on behalf of the company obtain
confirmations where amounts are material. SA(UK&)501(8)
17
Review the documentation obtained at the period end physical stock count in
relation to the last goods movements (in and out) in the period.
Cut-off
15 Where the company holds stock on behalf of third parties such items are
excluded from stock. Where material, consider confirmation from the third
party.
11/10/2010 Page 65
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet G1
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Prepared by:
Stock and Work in Progress Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing steps are suggestions onIy and shouId be
removed or added to as necessary to address the risks of materiaI misstatement identified at the risk assessment
stage.
18 Agree this documentation to purchase and sales invoices recorded in the
nominal ledger. Ensure that these purchases and sales are recognised in the
same period as the stock movement to which they relate.
19 n addition, consider material purchase and sales invoices posted pre and post
period end. Agree these invoices to goods receipt and dispatch documentation.
Ensure that these sales and purchases are recorded in the correct periods.
Contracts
20 Ascertain the nature of contracts, i.e. short term or long term, and ensure that
these are appropriately categorised.
Short-Term Contracts
21 Select a sample of contracts from the accounting records and discuss the state
of progress with the person in charge.
22 Vouch costs incurred to supporting documents e.g. invoices, timesheets etc.
23 Review the allocation of overheads to contracts to ensure the basis is
reasonable and consistent.
24 Review the progress on these contracts post period end and evaluate whether
the contract is being valued at the lower of cost and NRV.
25 Review the level of provisions to ensure that they are adequate.
Long-term contracts
26 Select a sample of contracts from the accounting records and discuss the state
of progress with the person in charge.
27 Vouch amounts included in turnover to appropriate supporting documents e.g.
surveyors' certificates as being the value of work done.
28 Vouch costs incurred to supporting documents e.g. invoices, timesheets, etc
ensuring they are correctly allocated between current and future periods.
29 Review the allocation of overheads to contracts to ensure the basis is
reasonable and consistent.
30 Vouch amounts invoiced on account to the sales ledger and ensure the
balance/excess on payments to account is correctly calculated and treated.
31 Compare the costs to date against the estimated budgeted cost to the same
stage of completion and consider the requirement for a provision.
32 Ensure that any provisions/accruals for foreseeable losses are treated
appropriately and consider the need for any further provision.
33 Additional tests/test areas to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that stock is not materially mis-stated in the accounts.
11/10/2010 Page 66
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet G2
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Stock and Work in Progress - Attendance Substantive Tests Prepared by:
Reviewed by:
Return to ndex
Test ScheduIe/
Comment InitiaIs Date
Obtain and evaluate details of the client's planned stocktake procedures.
SA(UK&)501(4) Review and confirm that:
(i) Client staff are properly briefed;
(ii) Proper controls have been set up to cover stock movements and cut-
off; and
(iii) The overall procedures are adequate and will result in the accurate
recording of stock and work in progress.
2 Review the prior period's audit file and/or the Audit Planning Memorandum for
major stock lines held, their location and any special knowledge required for
identifying stock, its condition etc.
3 Consider whether it will be efficient to combine stock take attendance with
physical verification of fixed assets and material cash counts.
4 Attend the clients physical stock counting, unless impractible.
Note conclusions drawn from observing count, as to:
(i) Care taken by client staff;
(ii) Accuracy of recording results;
(iii) The execution of the count and the manner in which instructions were
followed;
(iv) Control of stock movements;
(v) Control over issue of count sheets and their return, including ruling off of
stock sheets after last item and cancellation of issued but unused sheets;
(vi) Recording of damaged, obsolete or slow-moving goods; and
(vii) Control over counting to ensure that stock is not double counted or
omitted and the manner in which problems were cleared.
Select a sample of items from the stock on hand and:
(i) Count items and trace to the count sheets, note and reconcile any
differences;
(ii) f an item looks obsolete or damaged ensure a note is made to this
effect; and
(iii) Check that enough detail is recorded on the test schedule to ensure that
the item can be traced to the final stock sheets.
Select a sample of items from the count sheets and:
(i) Check to physical stock, note and reconcile any differences;
(ii) f an item looks obsolete or damaged ensure a note is made to this
effect; and
(iii) Check that enough detail is recorded on the test schedule to ensure that
the item can be traced to the final stock sheets.
8 Review procedures taken to record the current stage of completion of work in
progress and confirm that these are being followed.
9 nspect stock area, and make enquiries of the staff to determine if there are
slow-moving or obsolete items of stock. n particular, enquire about and
document items stored in relatively inaccessible areas, dirty or damaged items
and items with previous year's stock tickets still attached.
If stock is materiaI to the financiaI statements, obtain sufficient appropriate audit evidence regarding the existence and condition of
the stock. ISA(UK&I)501(4)
1
At the cIient's premises
5
7
6
PreIiminary Work
11/10/2010 Page 67
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet G2
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Stock and Work in Progress - Attendance Substantive Tests Prepared by:
Reviewed by:
Return to ndex
Test ScheduIe/
Comment InitiaIs Date
If stock is materiaI to the financiaI statements, obtain sufficient appropriate audit evidence regarding the existence and condition of
the stock. ISA(UK&I)501(4)
G1
G1
G1
12 Obtain a list of completed despatch documents for goods not despatched at the
stocktake date and ascertain whether these were included in the stock count.
13 Determine whether items in the goods inward area are included in the stock
count.
14 Note the numbers of the count sheets used to ensure that none is added or
removed at a later date.
Note for audit use:
(i) Last sales invoice number;
(ii) Last credit note number;
(iii) Last cheque number issued on each account;
(iv) Last deposit made to each bank account; and
(v) Any cheques written but not issued.
16 f the physical counting is conducted at a date other than the date of the
financial statements perform additional audit procedures to obtain audit
evidence about whether changes in stock between the count date and the date
of the financial statements are properly recorded. SA(UK&)501(5)
17 f unable to attend physical stock counting make or observe some physical
counts on an alternative date and perform audit procedures on intervening
transactions. SA(UK&)501(6)
18 f attendance at the physical stock counting is impracticable, perform alternative
procedures to obtain sufficient appropriate audit evidence regarding the
existence and condition of the stock. SA(UK&)501(7)
19 Note any apparent new, missing or idle fixed assets and put on fixed assets
section of the file.
20 Prepare a file note and commentary on the conduct of the stocktake and
include the information obtained above.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
11
Where the client uses numbered goods inward and outward dockets, note the
last numbers used before the count commences. Where these are not in use
consider and document what other cut-off controls exist. (See also point 15
below)
10
Enquire into stocks held on behalf of third parties and make sure that these are
recorded separately. Also ascertain if there is any stock held by third parties
and if material, obtain sufficient appropriate audit evidence regarding the
existence and condition of that stock. SA(UK&)501(8)
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude
that the stock count was appropriately carried out.
Reviewer
15
11/10/2010 Page 68
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet H-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Debtors Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
Debtors - Amounts falling due within one year
31 December 2010 31 December 2009
C C
Trade debtors 0 0
Other debtors 0 0
Prepayments and accrued income 0 0
0 0
Debtors - Amounts falling due after one year
31 December 2010 31 December 2009
C C
Other Debtors 0 0
Called up share capital not paid 0 0
Prepayments and accrued income 0 0
Pension prepayment 0 0
Other prepayments 0 0
0 0
Prepayments and accrued income
31 December 2010 31 December 2009
C C
May include, for example:
nsurance 0 0
Rent 0 0
0 0
11/10/2010 Page 69
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet H1
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Prepared by:
Debtors Reviewed by:
Return to ndex
Audit Programme
ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Obtain or prepare lead schedules and agree to balance sheet. H-
3 Obtain or prepare an aged analysis of trade debtors. Consider its veracity.
4 Prepare a commentary explaining the composition of debtor balances.
Compare balances and debtor days with prior years and with our
expectations. Note any significant changes in the ratio of overdue
accounts. Obtain explanations of any variations and consider implications
for the bad debt provision.
Obtain or prepare a schedule of trade debtors:
Select a sample and:
Confirmation
Schedule
(ii) verify against post year-end receipts and other evidence of the
existence of the debtor.
(ii) examine correspondence re disputed balances;
(iii) enquire into all significant credit balances;
(iv) examine after-date sales credit notes; and
(v) reanalyse amounts due from parent, subsidiary and associated
undertakings, directors and employees.
6 n the case of each non-response to a debtors confirmation letter, perform
alternative audit procedures to obtain relevant and reliable audit evidence.
SA(UK&)505(12)
7 f it is determined that a response to a debtors confirmation request is
necessary to obtain sufficient appropriate audit evidence, alternative audit
procedures will not provide the audit evidence required. f such
confirmation cannot be obtained, determine the implications for the audit
and the auditor's opinion in accordance with SA (UK and reland) 705.
SA(UK&)505(13)
8 Where no sales ledger exists obtain a list of trade debtor balances at the
period end and reconcile this to the supporting accounting records.
Where a sales ledger is maintained obtain or prepare the control account:
(i) Test check extraction and addition of ledger balances, agree the list
to the control account;
(ii) Check the addition of the control and check balance to schedule of
balances and lead schedule; and
(iii) Examine and vouch reconciling entries, adjustments and journals.
Ensure there is an adequate explanation.
10 dentify any outstanding debtors in breach of contract and/or late payment
regulations. Ensure potential interest is quantified.
11 Discuss bad and doubtful debts with management and review the entity's
provisions. Discuss with the client any debts which are outside the terms of
trade and unpaid. Evaluate explanations given for not providing against
long-term outstanding balances. Examine correspondence where available
and always corroborate management assertions.Challenge the estimation
techniques used by management in the calculation of the provisions.
Consider the outturn of the provision in previous years.
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing steps are suggestions onIy and shouId be
removed or added to as necessary to address the risks of materiaI misstatement identified at the risk assessment
stage.
5
9
(i) circularise trade debtors, or explain why circularisation is not
appropriate
11/10/2010 Page 70
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet H1
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Prepared by:
Debtors Reviewed by:
Return to ndex
Audit Programme
ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing tests. The foIIowing steps are suggestions onIy and shouId be
removed or added to as necessary to address the risks of materiaI misstatement identified at the risk assessment
stage.
12 dentify and verify provisions made for reasons other than the age of debt.
Copyright Chartered Accountants reland. All rights reserved
Test check invoices immediately prior to and after year end: G1
(i) to ensure they are entered in correct accounting period; and
(ii) to ensure stock movement is in correct period
14 Enquire into and verify correct treatment of stocks despatched on sale or
return.
15 Enquire into any material receivable balances cleared by journal entry after
the period end.
16 Obtain or prepare a schedule of prepaid expenses and : H-
(i) compare with previous period
(ii) vouch material items to source documentation
(iii) consider the reasonableness of other items.
17 Obtain or prepare a schedule of other debtors and: H-
(i) vouch to supporting documentation
(ii) separately identify loans to employees and obtain written confirmation
of movements and balances.
18 Extract as necessary and agree intra-group or related company balances
to the other party's accounts, or obtain written confirmation of agreement
between the companies, and ensure disclosed.
19 Obtain financial statements for group and related companies. Confirm by
reference to the financial statements that intra-group or related company
balances are recoverable. Obtain alternative confirmations or audit
evidence if the financial statements show deficits or other difficulties in
repaying the loans. Consider the adequacy of this evidence.
20 Confirm that intra-group or related company balances are properly
presented in the correct part of the balance sheet.
dentify any loans due from directors and ensure adequate disclosure of
these is made in the financial statements (see also sections A10.2a,
A10.2b, R1 &Q1).
(n respect of Republic of reland: specifically consider compliance with the
relevant sections of the Companies Act 1990 and the possible requirement
to report in accordance with the Company Law Enforcement Act 2001).
22 Obtain or prepare a separate schedule of debts receivable after more than
12 months.
23 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
24 Additional tests/test areas to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
13
21
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that debtors are not materially mis-stated in the accounts.
11/10/2010 Page 71
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet I-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Bank Balances and Cash in Hand Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
31 December 2010 31 December 2009
C C
Debit BaIances:
Bank and cash
Current account 0 0
Deposit account 0 0
Petty cash 0 0
0 0
Creditor BaIances:
Amounts payabIe within one year
Bank overdraft 0 0
Bank loans 0 0
0 0
Amounts payabIe after one year
Bank loans 0 0
11/10/2010 Page 72
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet I1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Bank Balances and Cash in Hand Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Obtain or prepare a lead schedule and agree to balance sheet. -
3 Obtain or prepare reconciliations of all accounts held. Check outstanding items
to post period end bank statements.
4 Enquire into any items un-presented for a significant period of time.
5 Confirmation
Schedule
(i) n the case of each non-response, perform alternative audit procedures to
obtain relevant and reliable audit evidence. SA(UK&)505(12)
(ii) f it is determined that a response to a bank confirmation request is
necessary to obtain sufficient appropriate audit evidence, alternative audit
procedures will not provide the audit evidence required. f such confirmation is
not obtained, determine the implications for the audit and the auditor's opinion
in accordance with SA (UK and reland) 705. SA(UK&)505(13)
Consider whether window dressing has taken place. n particular:
(i) check that all payments recorded prior to the period end were
despatched before that date;
(ii) review cash book and statements for significant movements around the
year end; and
(iii) verify any significant reconciling items reversed in the subsequent
period.
7 Where possible, verify material amounts of cash in hand. Consider whether
there have been significant cash movements in the period and what further
verification work is needed.
8 Review cash book during the period and highlight significant and unusual
entries. nvestigate any such items found. Consider checking analysis.
9 Check that the client has authority in the constituting documents for any bank
borrowings or overdraft.
10 Ensure that disclosure is made of all bank security.
11 (a) Review covenants in place in relation to bank facilities. Document situations
where these have been breached in the period, commitments and security
given and implications for the audit.
(b)Ensure adequate disclosure of commitments, security and covenants in
place, including any breach of covenants noted.
12 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
13 Additional tests/test areas to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
6
Reviewer
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that cash at bank and in hand, bank overdrafts and loans are not materially mis-stated in the financial statements.
Obtain standard bank confirmation and check to reconciliations. SA(UK&)505
11/10/2010 Page 73
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet 1-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Creditors Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
Creditors - Amounts falling due within one year
31 December 2010 31 December 2009
C C
Bank and other loans - 0 0
Obligations under finance leases and hire
purchase contracts 0 0
Trade creditors 0 0
Corporation Tax 0 0
Social security costs 0 0
PAYE 0 0
Other creditors 0 0
Accruals and deferred income 0 0
0 0
Creditors - Amounts falling due after more than one year
31 December 2010 31 December 2009
C C
Bank and other loans - 0 0
Obligations under finance leases and hire
purchase contracts 0 0
Government Grants 0 0
Pension commitments 0 0
Other 0 0
0 0
AccruaIs and deferred income
31 December 2010 31 December 2009
C C
May include, for example:
Light and Heat 0 0
Salary Accrual 0 0
0 0
Provisions for LiabiIities and Charges
31 December 2010 31 December 2009
C C
May include, for example:
Owners contracts 0 0
Other provisions 0 0
0 0
11/10/2010 Page 74
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet 11
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Creditors Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
Obtain or prepare lead schedules showing amounts falling due within one year
and after more than one year.
J-
Prepare a commentary explaining the composition of creditor balances and
comparing them with prior periods and our expectations.
Obtain or prepare a list of trade creditors:
(i) Extract a sample from the purchase ledger accounts and reconcile
balances to supplier statements. Where supplier statements are not
available test for understatement by an alternative means, such as by
circularisation (see Confirmation Schedule at Appendix 3); SA(UK&)505(7)
(ii) nvestigate significant debit balances;
(iii) Check after-date invoices and credit notes for additional provisions;
(iv) nvestigate and explain amounts outstanding for an unusually long
period; and
(v) Reanalyse amounts due from parent, subsidiary and associated
undertakings.
4 f necessary, evaluate whether the results of the external confirmation
procedures provide relevant and reliable audit evidence, or whether further
evidence is necessary. SA(UK&)505(16)
Obtain or prepare a control account where a purchase ledger is maintained:
(i) Test check extraction and addition of ledger balances, agree list to
control account;
(ii) Check the addition of the control account and check the balance to the
schedule of balances and lead schedule; and
(iii) Examine and vouch reconciling entries, adjustments and journals.
Ensure there is an adequate explanation.
6 Review post period end cash book, bank payments, purchase invoices and
vouchers to identify any un-provided creditors and/or accruals.
G1
8 Enquire into correct treatment of stocks held on sale or return.
9 Prepare detailed schedules of movements on directors' loan accounts and
shareholder loan accounts. Obtain directors' own written confirmation of
movements and balances.
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
2
3
5
7 Test cut-off procedures to ensure a liability is recorded for all stock held.
11/10/2010 Page 75
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet 11
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Creditors Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
(a) Agree PAYE/PRS/NC accrual to wages records;
(b) Test check operation of PAYE/PRS/NC during the period (including
casual wages, if applicable);
(c) Reconcile PAYE/PRS/NC control account closing balances to
remittances/returns; and
(d) Agree revenue payments/refunds to ROS records (RO).
(a) Review the VAT returns and reconcile a sample to the accounting
records.
(b) Test check recording of VAT when testing sales and purchases.
(c) Test to ensure VAT returns are completed correctly and accurately
and submitted in a timely manner. Review most recent return to ascertain
whether returns are up to date.
(d) Consider whether any interest or penalties may be due and that they
have been correctly recorded.
(e) Review any correspondence with customs and excise authorities
(f) Reconcile the period end VAT figure.
(g) Test for payment or receipt of the balance post period end.
(h) Agree revenue payments/refunds to ROS records (RO).
12 Consider compliance procedures (separate checklists required) for VAT and
PAYE and PRS/NC.
13 Obtain or prepare a schedule of accruals. J-
Compare with previous year. Vouch material items. Consider the
reasonableness of other items.
For the period after the balance sheet date to the end of the fieldwork scrutinise
the following for payables omitted:
(i) Purchase day book or invoice listing;
(ii) nvoices in process of being passed for payment;
(iii) Cash book;
(iv) Correspondence with suppliers and enquire of client staff.
15 Ensure that any reconciling items noted in the trade creditor reconciliations to
creditor statements are accrued where necessary.
16 Vouch any material other creditors to supporting documentation.
17 Extract as necessary and agree group or inter-company balances to the other
party's accounts, or obtain written confirmation of agreement between the
companies.
18 Confirm that group or inter-company balances shown as due after more than
one year are subject to at least 12 months' notice of repayment.
Lease (including hire purchase) and other loan creditors:
(i) Obtain copies of leases, loans and hire purchase agreements taken out
during the period;
(ii) Reconcile balances to control accounts or consider circularising third
parties;
(iii) Ensure amounts are correctly classified between:
(a) amounts repayable within one year;
(b) amounts repayable between one and two years;
(c) amounts repayable between two and five years;
(d) amounts repayable after more than five years.
PAYE/PRSI/NIC
VAT
10
11
19
14
11/10/2010 Page 76
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet 11
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Creditors Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
dentify, schedule and check disclosure of capital commitments not provided for
and which:
(i) are contracted for; and
(ii) committed but not contracted.
(See also Fixed Assets Programme). E1
21 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
22 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
20
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that creditors are not materially mis-stated in the accounts.
11/10/2010 Page 77
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet K-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Taxation Reviewed by:
Audit Programme Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
31 December 2010 31 December 2009
C C
Corporation tax 0 0
Deferred tax 0 0
11/10/2010 Page 78
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet K1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Taxation Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Obtain or prepare a lead schedule showing opening and closing balances and
explaining the movements in the period. Agree the opening balances, check
additions, and agree totals to trial balance and the financial statements.
K-
3 Compare (vouch) amounts paid/refunded with assessments and
correspondence.
4 Note the latest period agreed and determine whether further provision is
required by reference to nland Revenue (UK/N)/Revenue Commissioners
(RO) enquiries and investigations. Copy correspondence to file.
5 Review or check tax computations.
6 Review or check capital allowances computation.
7 Review or check schedules of add backs.
Review or check notes to the tax computations:
(i) Directors' remuneration;
(ii) Analyse excessive or sub-normal charges; and
(iii) Any other points.
9 Review or check deferred taxation calculations, provision and charge. L1
10 Perform a reconciliation between the notional tax charge on net profits and the
actual charge in the profit and loss account.
11 Reconcile the taxation creditor's and confirm balance's comprise valid amounts.
12 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
13 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
Subject to matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude
that the tax charge and liability are not materially mis-stated in the accounts.
8
Reviewer
11/10/2010 Page 79
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet L1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Liabilities, Contingencies and Charges Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Prepare lead schedules. (See also J-)
LiabiIities
Obtain and check the deferred taxation calculations: K1
(i) the charge to tax is reconciled;
(ii) at an appropriate rate; and
(iii) consider recoverability if account balance is a debit.
4 Obtain and check the schedules and calculations for any pension liability
(or asset) provision and, irrespective of type of scheme, the disclosures.
5 Prepare a commentary explaining the composition of all other provisions
balances.
6 Assess the adequacy of provisions and compare them with prior periods
and our expectations.
Contingencies
Review the following with a view to the identification and quantification of
any liabilities/contingent liabilities:
(i) Board minutes;
(ii) Bank letter;
(iii) Solicitors letter;
(iv) Legal correspondence;
(v) Laws and regulations;
(vi) Enquire of management;
(vii) Accident Log; and
(viii) Other sources (specify) SA(UK&)501(9)
8 f a risk of material misstatement regarding litigation or claims has been
identified seek direct communication with the entity's external legal
counsel. SA(UK&)501(10)
9 f management refuses to give permission to communicate or meet with
the entity's external legal counsel or the entity's external legal counsel
refuses to respond appropriately to the letter of enquiry or is prohibited
from responding and sufficient appropriate audit evidence is not possible
to obtain by performing alternative audit procedures, modify the opinion in
the auditor's report in accordance with SA(UK&)705(11).
SA(UK&)501(11)
10 Obtain from management or those charged with governance a written
representation that all known actual or possible litigation or claims whose
effects should be considered when preparing the financial statements
have been disclosed to the auditor and accounted for. SA(UK&)501(12)
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
3
7
11/10/2010 Page 80
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet L1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Liabilities, Contingencies and Charges Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
Charges
Where securities are given:
(i) list aggregate amounts secured;
(ii) give general indication of securities provided;
(iii) identify assets given as security; and
(iv) confirm proper disclosure.
See also details obtained from bank letters, Test 10 on 1
12 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
13 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurances has been obtained to enable us
to conclude that the amounts and disclosures of liabilities, contingencies and charges are not materially mis-stated in
the accounts.
Reviewer
11
11/10/2010 Page 81
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet M-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Statutory Matters, Share Capital and Reserves Reviewed by:
Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
31 December 2010 31 December 2009
C C
Authorised:
X Ordinary shares of C1 each 0 0
Allotted, called up and fully paid:
X ordinary shares of C1 each 0 0
Reserves and Dividends
Share Premium
RevaIuation
reserve Other reserves
Profit and
Ioss account TotaI
C C C C C
01 January 2010 0 0 0 0 0
Exchange difference on loan 0 0 0 0 0
Transfer from revaluation reserve to profit and loss account 0 0 0 0 0
Retained profit for the year 0 0 0 0 0
Dividends distributed 0 0 0 0 0
At 31 December 2010 0 0 0 0 0
11/10/2010 Page 82
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet M1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Statutory Matters, Share Capital and Reserves Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Statutory Matters
1 Read the minute book and note any significant matters.
Note and confirm with client:
(a) Names of directors and secretary;
(b) Directors to retire by rotation, if relevant; and
(c) Directors' shareholdings at beginning and end of period.
3 Confirm all registers (including directors and their interests) reflect the current
position and note any changes needing to be disclosed in these financial
statements.
4 Ensure details of any assets charged as security for loans from third parties are
disclosed in the accounts. Agree charges to CRO/Company Office records.
5 Check whether any mortgages/charges are correctly registered and /or notices
of satisfaction registered, where relevant.
6 Obtain a company search from the Companies Registration Office (RO)/
Companies House (UK/N) and review to determine whether all relevant
documents have been filed to effect any changes made during the period (for
example, change of company registered office, registration of new directors
etc.)
7 Confirm the company has filed an annual return at least once each year
on/before the due date.
Share CapitaI and Reserves
8 Agree authorised share capital with up to date Memorandum of Association and
any special resolutions.
9 Agree issued share capital with register of members.
Prepare schedule of directors' interest in shares.
(For Republic of Ireland companies, include company secretary's interests).
11 Prepare schedule of share capital issued during the period detailing the date of
issue, the consideration and, if required, the reason for issue.
12 Prepare schedules for all classes of reserves detailing movements during the
period.
13 Prepare schedule of dividends paid and proposed giving dates of payment and
check disclosure in Directors' Report where necessary. Confirm dividends are
all paid out of distributable reserves.
14 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
15 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
Subject to matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to conclude
that share capital, reserves and dividends are not materially mis-stated in the accounts and that statutory books have been
properly maintained.
Reviewer
2
10
11/10/2010 Page 83
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet N1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Sales and Income Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Prepare a commentary on sales for the period. Compare result with previous
periods, budgets and expectations. Comment upon customer profile, sales
mix and trends in pricing. SA(UK&)520(4)
(a) Select a sample* of initial sales documentation in accordance with
SA(UK&)530(6)(7)(8) such as sales orders, contracts or goods despatched
notes and:
i) vouch details to invoice and other supporting documentation which
proves that the sale has occurred; and
ii) agree invoices through to day book, sales ledger, nominal ledger and
cash book.
iii) confirm that the sale has been recognised in the same period as the
expense to which it relates (i.e. stock, deferred expenditure)
(b) Consider whether you should review other controls over sales.
(c) Conclude on the operation of the controls tested.
4 Consider the possibility of unrecorded sales and any additional audit work
required. Does analytical review indicate the possibility of unrecorded sales?
Consider the adequacy of controls.
5 Review sales returns, if material. Consider additional audit work.
6 Review other income. f material, vouch to supporting documentation and
ensure it is properly disclosed.
7 Compare turnover disclosed in accounts to VAT returns and reconcile any
difference.
G1
9 Select a number of material sales transactions accounted for in the period
before and after the year end and agree to goods dispatch information to
ensure that turnover is recorded in the correct accounting period.
10 Obtain sufficient appropriate audit evidence regarding the presentation and
disclosure of segment information in accordance with the applicable financial
reporting framework eg SSAP25
11 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
12 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
*Note on Audit SampIing - Audit sampIing invoIves the appIication of audit procedures to Iess than 100% of items within a popuIation of audit
reIevance such that aII sampIing units have a chance of seIection in order to provide the auditor with a reasonabIe basis on which to draw
concIusions about the entire popuIation. ISA(UK&I)530(5a)
In seIecting the reIevant sampIe ensure that the sampIe is seIected from the entire period. This wiII aIIow a concIusion to be made on the
system as a whoIe. The resuIts of the sampIe tests shaII dictate whether further/reduced audit procedures are required. The resuIts of these
tests may aIso affect the IeveI of testing required in future audits.
Identify aII materiaI sources of income and ensure the foIIowing refIects the audit pIan. The foIIowing steps are suggestions onIy
and shouId be removed or added to as necessary to address the risks of materiaI misstatement identified at the risk assessment
stage. Consider your reIiance on controIs as documented in C1.
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that the accounting system adequately records turnover in the period and that sales and income is not materially
mis-stated and is fairly presented.
Reviewer
8
Perform sales cut-off testing. See work done on stock section (G1). Consider
other possible cut-off errors eg non stock sales, fees, commissions etc being
recorded in the incorrect period. Review material items before and after the
year end.
3
11/10/2010 Page 84
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet O1
31 December 2010 Audit MateriaIity -
Performance MateriaIity -
InitiaIs Date
Prepared by:
Purchases and Expenses Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Prepare a commentary on the level of purchases and expenses for the year.
Compare results with previous years, budgets and expectations. Comment
upon the supplier profile, the expenditure mix and unusual and one-off
transactions.
G1
(a) Select a sample* of purchase invoices from the nominal ledger:
(i) Vouch details to invoice;
(ii) Ensure the invoice is properly authorised;
(iii) Ensure the invoice is addressed to the company;
(iv) Check that the invoice is valid and contains the statutory supplier
details (for example, name, address, company registration number, VAT
registration number of the supplier);
(v) Check that the appropriate VAT rate was applied;
(vi) Check the totals and cross totals;
(vii) Trace details to goods received notes; and
(viii) Trace the payment to the cash book.
(ix) Ensure that the purchase invoice is recognised in the same period as
the corresponding increase in stock.
(b) Consider whether you should review other controls over purchases.
(c) Conclude on the operation of the controls tested.
5 Review cash expenditure levels, if material, and consider additional audit work.
6 Review purchase returns, if material, and consider additional audit work.
7 Obtain sufficient appropriate audit evidence regarding the presentation and
disclosure of segment information in accordance with the applicable financial
reporting framework, eg SSAP25.
8 Compare purchases for resale disclosed in the accounts to VAT returns and
reconcile any difference.
9 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
10 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
* Note on Audit SampIing - Audit sampIing invoIves the appIication of audit procedures to Iess than 100% of items within a popuIation of audit
reIevance such that aII sampIing units have a chance of seIection in order to provide the auditor with a reasonabIe basis on which to draw
concIusions about the entire popuIation. ISA(UK&I)530(5a)
In seIecting the reIevant sampIe ensure that the sampIe is seIected from the entire period. This wiII aIIow a concIusion to be made on the system
as a whoIe. The resuIts of the sampIe tests shaII dictate whether further/reduced audit procedures are required. The resuIts of these tests may
aIso affect the IeveI of testing required in future audits.
Ensure that the audit pIan is refIected in the foIIowing tests. The foIIowing steps are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage. Consider your
reIiance on controIs as documented in C1.
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that purchases and expenses are not materially mis-stated and are fairly stated.
4
Reviewer
3
Perform cut-off tests. See work done on stock section (G1). Consider other
possible cut-off errors, eg purchase of non stock items, significant expenses
etc being recorded in the incorrect period. Review material items before and
after the year end.
11/10/2010 Page 85
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet P-
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Salaries and Wages Reviewed by:
Return to ndex
Important Note - This lead schedule is for general guidance only. It will need to be amended as necessary
to reflect the circumstances of the individual audit assignment.
Staff Costs
31 December 2010 31 December 2009
C C
Wages and salaries 0 0
Social security costs 0 0
Pension costs 0 0
0 0
Directors remuneration 0 0
31 December 2010 31 December 2009
Management 0 0
Administration 0 0
Production 0 0
Research and development 0 0
Sales 0 0
0 0
The average number of persons employed by the company (including executive directors) during the year analysed by
category, was as follows:
11/10/2010 Page 86
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet P1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Salaries and Wages Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Prepare a commentary on the level of payroll costs incurred during the period.
Compare with previous periods and budgets. Comment upon the payroll profile,
one-off charges and general level of pay increases/decreases.
Select a sample of employees from the payroll records, ensuring that
starters/leavers are included, and:
(i) Agree employee details back to employee records;
(ii) Record how existence has been confirmed;
(iii) Check gross pay to records;
(iv) Check that all non salary/pay amounts are properly treated as
benefits in kind
(v) Check the calculation of deductions, BK, PAYE and employers'
PRS/NC, pension contributions and net pay;
(vi) Check the totals and cross totals;
(vii) Check the postings to the nominal ledger;
(viii) Check the net figure to the cash book; and
(ix) Ensure PAYE/PRS/NC is paid on a timely basis.
4 Obtain details of directors' emoluments, including benefits in kind and pension
contributions.
5 Review cash and bank payments for casual labour and other payments not
passed through PAYE/PRS/NC system. Confirm their authority and that they
are properly paid gross.
6 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
7 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
3
Reviewer
Ensure that the audit pIan is refIected in the foIIowing tests. The foIIowing steps are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage. Consider your
reIiance on controIs as documented in C1.
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that employees exist and salaries and wages are fairly stated.
11/10/2010 Page 87
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Q1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Related Parties Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
1 Assess the appropriateness of the accounting policy and the accounting
estimates method for this area. Ensure that the accounting policy is in
accordance with accounting standards and applicable law, and that the
methods used for making the accounting estimates are appropriate.
2 Ensure the engagement team's discussion at the audit planning stage included
specific consideration of the susceptibility of the financial statements to material
misstatement due to fraud or error that could result from the entity's related
party relationships and transactions. SA(UK&)550(12)
Enquire of management regarding:
(i) the identity of the entity's related parties, including changes from the prior
period;
(ii) the nature of the relationship between the entity and these related parties;
(iii) whether the entity entered into any transactions with these related parties
during the period and, if so the type and purpose of the transactions.
SA(UK&)550(13)
4 Obtain a schedule of transactions and balances with related parties.
5 Review and inspect bank confirmations, legal confirmations and minutes of
meetings, to identify possible related party transactions.
Remain alert when inspecting other records or documents for arrangements or
other information that may indicate the existence of related party relationships
or transactions. Examples of these records include the following:
Third party confirmations (in addition to bank and legal confirmations);
Share register;
Tax returns;
Returns to any regulators;
Correspondence/invoices with lawyers;
Pension schemes;
Trusts for the benefit of employees and
Other relevant documentation. SA(UK&)550(15)
7 f any significant transactions outside the entity's normal course of business are
identified during the audit enquire of management about the nature of these
transactions and whether related parties may be involved. SA(UK&)550(16)
8 Share relevant information obtained about the entity's related parties with other
members of the engagement team. SA(UK&)550(17)
9 dentify and assess the risks of material misstatement associated with related
party relationships and transactions and determine whether any of those risks
are significant risks. n making the determination, treat identified significant
related party transactions outside the entity's normal course of business as
giving rise to significant risks. SA(UK&)550(18)
10 f fraud risk factors are identified (including circumstances relating to the
existence of a related party with dominant influence) when performing the risk
assessment procedures and related activities in connection with related parties,
consider such information when identifying and assessing the risks of material
misstatement due to fraud in accordance with SA(UK&)) 240.
SA(UK&)550(19)
6
Ensure the audit pIan is refIected in the foIIowing steps. The foIIowing steps are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
3
11/10/2010 Page 88
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Q1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Related Parties Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing steps. The foIIowing steps are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
If reIated party transactions are identified that were not discIosed by
management:
(i) promptly communicate the relevant information to the other members of the
engagement team;
(ii) request management to identify all transactions with the newly identified
related parties;
(iii) enquire as to why the entity's controls over related party transactions failed
to enable the identification or disclosure of the related party relationships or
transactions;
(iv) perform appropriate substantive audit procedure relating to such newly
identified related parties or significant related party transactions, for example:
- compare transactions identified to other normal transactions to ascertain
if at arms length
- obtain supporting documentation, eg invoivce, dispatch note etc
- review post year end transactions to identify if transaction was subsequently
cancelled
(v) reconsider the risk that other related parties or significant related party
transactions may exist that management had not previously identified and
perform additional audit procedures as necessary;
(vi) f the non-disclosure by management appears intentional (and therefore
indicative of a risk of material misstatement due to fraud) evaluate the
implications for the audit. SA(UK&)550(22)
For identified significant related party transactions outside the entity's normal
course of business:
(a) inspect the underlying contracts or agreements and evaluate:
(i) whether the business rationale (or lack thereof) of the transactions suggests
that they may have been entered into to engage in fraudulent financial reporting
or to conceal misappropriation of assets;
(ii) whether the terms of the transactions are consistent with management
expectations and
(iii) whether the transactions have been appropriately accounted for and
disclosed in the financial statements.
(b) obtain audit evidence that the transactions have been appropriately
authorised and approved SA(UK&)550(23)
13 f management has made an assertion in the financial statements to the effect
that a related party transaction was conducted on terms equivalent to those
prevailing in an arm's length transaction, obtain sufficient appropriate audit
evidence about the assertion. SA(UK&)550(24)
14 Evaluate whether the identified related party relationships and transactions
have been appropriately accounted for and disclosed in the financial
statements. SA(UK&)550(25)
A8
A7
17 Document the names of the identified related parties and the nature of the
related party relationships. SA(UK&)550(28). Also include in Matters forward
for next period's audit (A3).
11
16
Communicate with those charged with governance significant matters arising
during the audit in connection with the entity's related parties.
SA(UK&)550(27)
12
15
Obtain written representations from management and, where appropriate,
those charged with governance that they have disclosed the identity of the
entity's related parties and all the related party relationships and transactions of
which they are aware and they have appropriately accounted for and disclosed
such relationships and transactions. SA(UK&)550(26)
11/10/2010 Page 89
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Q1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Related Parties Prepared by:
Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Ensure the audit pIan is refIected in the foIIowing steps. The foIIowing steps are suggestions onIy and shouId be removed or
added to as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
18 n Republic of reland, consider the legality of related party transactions and
any reporting obligations which may arise in accordance with the Company Law
Enforcement Act 2001 for example in the event of an illegal loan to a director
in contravention of Section 31 of the Companies Act 1990 and the Companies
(Amendment) Act 2009. (See also A10.2(a). H1 & R1)
19 For RO, ensure that the disclosure requirements of Section 41 to 43 of the
Companies Act 1990 are complied with in relation to the disclosure of related
party transactions. (See also A10.2(a))
20 Consider if there is any evidence of "window dressing transactions around the
period end. Follow up any such transactions and ensure that any related party
transactions are disclosed.
21 Ensure that none of the audit evidence obtained from other audit procedures is
in any way inconsistent with the schedule of related parties obtained.
22 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
23 Additional tests to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Reviewer
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that the financial statements are not materially mis-stated in respect of related party disclosures.
11/10/2010 Page 90
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet R1
31 December 2010 InitiaIs Date
Prepared by:
Compliance With Laws and Regulations Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
Request copies of any letters or reports from regulatory authorities including
those arising from visits to the clients premises SA(UK&)250A(14)(15), for
example:
(i) Health and safety;
(ii) Environmental health;
(iii) Fire inspectors;
(iv) Licensing officers; or
(v) Other: specify (these will vary depending on the industry in which the
client operates).
L1
f any breaches have occurred consider:
(i) Advising management forthwith; and
(ii) the impact on the financial statements. SA(UK&)250A(18)(19)(25)
A6
A14
A14
n the Republic of reland, ensure that due consideration has been given to the
reporting requirements of auditors under the Companies Acts 1963-2009.
Specifically consider whether we have become aware, in the course of our
audit, of any indictable offences committed by the company or an officer or an
agent of it which are reportable to the Director of Corporate Enforcement under
S.194 of the Companies Act, 1990 as amended by S.74 of the Company Law
Enforcement Act, 2001. n this context refer also to the Auditing Practices
Board Bulletin 2007/02, "The Duty of Auditors in the Republic of reland to
Report to the Director of Corporate Enforcement. SA(UK&)250A(28)
The ODCE has compiled a list of the indictable offences it considers most likely
to come to the attention of auditors in the course of their work. This list is as
follows: (nformation Notice /2009/4 Reporting Company Law Offences)
ISA 250A distinguishes the auditors responsibiIities in reIation to compIiance with two different categories of Iaws and
reguIations as foIIows:
(a) The provisions of those Iaws and reguIations generaIIy recognised to have a direct effect on the determination of materiaI
amounts and discIosures in the financiaI statements such as tax and pension Iaws and reguIations and
(b) Other Iaws and reguIations that do not have a direct effect on the determination of the amounts and discIosures in the
financiaI statements, but compIiance with which may be fundamentaI to the operating aspects of the business, to an entity's
abiIity to continue its business, or to avoid materiaI penaIties (for exampIe, compIiance with the terms of an operating Iease,
compIiance with reguIatory soIvency requirements, or compIiance with environmentaI reguIations); non compIiance with such
Iaws and reguIations may have a materiaI effect on the financiaI statements
In ISA 250A, differing requirements are specified for each of the above categories of Iaws and reguIations. For the category
referred to in (a) above, the auditors responsibiIity is to obtain sufficient appropriate audit evidence regarding compIiance with
the provisions of those Iaws and reguIations. For the category referred to in (b) above, the auditors responsibiIity is Iimited to
undertaking specified audit procedures to heIp identify non-compIiance with those Iaws and reguIations that may have a materiaI
effect on the financiaI statements. ISA(UK&I)250A(6)(7)
7
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
6 n the Republic of reland, consider the reporting requirements of an accountant
or auditor under S.59 of the Criminal Justice (Theft and Fraud Offences) Act
2001 where he becomes aware that theft, fraud or other related offences, as
defined by that Act, may have been committed. SA(UK&)250A(28). Copyright
Chartered Accountants reland
1
3
5 Consider whether we have grounds for suspicion of money laundering and the
need to report in accordance with the firm's internal anti-money laundering
procedures as required by money laundering legislation. n this context have
due regard to the risk of the "prejudicing an investigation offence in the
Republic of reland or the tipping off offence in United Kingdom/Northern
reland. SA(UK&)250A(28)
nspect legal fee invoices to identify any legal advice taken regarding breaches
arising during the year.
2
4 Record any breaches in the record of significant matters.
11/10/2010 Page 91
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet R1
31 December 2010 InitiaIs Date
Prepared by:
Compliance With Laws and Regulations Reviewed by:
Return to ndex
Audit Programme ScheduIe/
Comment InitiaIs Date
ISA 250A distinguishes the auditors responsibiIities in reIation to compIiance with two different categories of Iaws and
reguIations as foIIows:
(a) Giving of financial assistance by a company for the purchase of its own
shares;
(b) Fraudulent trading;
(c) Not holding an EGM where net assets are half or less of the company's
called up share capital;
(d) Wilfully providing false information in any return, report, certificate, balance
sheet or other document under the 1986 Act;
(e) Substantial property transactions/loans to directors or connected persons,
including Section 31 loans;
(f) Directors' and secretary's notification of interest in the company;
(g) False statements to auditors, delay in providing information;
(h) Failure to keep proper books and records;
(i) Furnishing false information under the Acts, including to electronic filing
agents;
(j) Destruction, mutilation, falsification of documents;
(k) Omission from balance sheet of directors' statement claiming audit
exemption;
(l) Wilfully false statements in accounts and returns;
(m) Company to have a director resident in the European Economic Area;
8 n the Republic of reland, ensure that due consideration has been given to
reporting requirements which arise under S.1079 of the Taxes Consolidation
Act 1997.
9 Determine any other whistle blowing obligations imposed on auditors by statute
and whether there have been any breaches of law and regulations which must
be reported to regulators as a consequence.
SA(UK&)250A(28)SA(UK&)250B
10 nclude in the audit documentation identified or suspected non-compliance with
laws and regulations and the results of discussions with management and,
where applicable, those charged with governance and other parties outside the
entity. SA(UK&)250A(29)
A8
12 When adequate information about the suspected non-compliance with laws and
regulations cannot be obtained, the auditor should consider the effect of the
lack of sufficient appropriate audit evidence on the auditors' report.
(SA(UK&)250A(20)(25)(26)(27)
13 f as a result of work you suspect any breach of laws and regulations, re-visit
your overall audit risk assessment. SA(UK&)250A(21)
14 Consider whether the relevant local data protection legislation has been
complied with as regards 'data controllers' and 'data processors'.
15 Ensure financial statements comply with the appropriate legislation and
applicable accounting standards.
16 Additional tests/test areas to ensure planning criteria have been met.
ConcIusion
Name: Accountant in Charge
Date
Name
Date
Copyright Chartered Accountants reland
Subject to the matters noted for the reviewer, nothing has come to our attention to indicate serious non-compliance by the
company that would require disclosure in, or amendment to, the financial statements.
Reviewer
7
11
nclude confirmation of actual or suspected breaches of laws and regulations,
or lack of such breaches, in the letter of representation. SA(UK&)250A(16)
11/10/2010 Page 92
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet S1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Prepared by:
Trial Balance Reviewed by:
Return to ndex
Audit Programme
ScheduIe/
Comment InitiaIs Date
1 Check client's trial balance to nominal ledger and check addition of trial
balance.
2 Check trial balance to draft accounts and review any post trial balance journals,
ensuring that these have been correctly shown on final accounts and included
on lead schedules.
3 Check the addition of a sample of nominal ledger accounts for arithmetic
accuracy. Ensure that tests cover the whole accounting period.
Review nominal ledger accounts for any large or unusual entries and obtain
supporting documentation. n particular, consider journal entries and other
movements in the following accounts. Explanations should be sought for
entries from sources other than those given below:
(i) cash/bank other than from cash book and Petty cash book;
(ii) creditors other than from purchase day book and cash book
payments;
(iii) purchases and expenses other than from Purchase day book and
cash/petty cash book payments;
(iv) wages/salaries other than from payroll records and cash book
payments; and
(v) debtors and sales other than from sales day book and cash book
receipt.
Consider whether the company has maintained or provided for the
maintenance of proper books of account (RO) / adequate accounting records
(N), taking into account:
(i) timeliness and accuracy of posting;
(ii) the level and nature of the activities (i.e. are the transactions recorded
and analysed in sufficient detail?);
(iii) adequate audit trail;
(iv) any problems encountered during the period; and
(v) number of audit adjustments required.
CompIetion
6 Agree accounts to lead schedules.
7 Ensure that all errors and outstanding matters are recorded in the review
section and that any matters arising which have a bearing on the next period's
audit are included in points forward for next period (A3).
8 Additional tests to ensure planning criteria have been met.
Subject to matters noted for the reviewer:
- the figures in the trial balance agree or reconcile to the lead schedules and the financial statements;
- nominal ledger accounts have been reviewed and any large or unusual items have been satisfactorily verified.
Name: Accountant in Charge
Date
Name
Date
4
5
Ensure the audit pIan is refIected in the foIIowing. The foIIowing steps are suggestions onIy and shouId be removed or added to
as necessary to address the risks of materiaI misstatement identified at the risk assessment stage.
Reviewer
ConcIusion
11/10/2010 Page 93
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet T1
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Deleted Tests Prepared by:
Reviewed by:
Return to ndex
11/10/2010 Page 94
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Appendix 1
31 December 2010
Return to ndex
To be sent to the CIient FinanciaI ControIIer prior to the compIetion of the Audit
PIanning Memorandum
1 Set out a very short paragraph regarding the principal activities of the company.
2 List the various locations the company operates from.
3 Set out a listing of the laws and regulations peculiar to your business that govern the conduct of your company.
n particular, detail any regulatory bodies that these accounts will be supplied to, or separately, any regulatory
bodies that you have to report to in order to comply with your industry standards.
4 Draw up an organisational chart on a separate page for the company identifying key persons and their roles.
5 Set out any significant events which occurred since the balance sheet date. f none, please reply none.
6 Set out all related parties with whom the company had dealings with during the course of the financial period,
along with the nature and scale of those dealings. f none please reply none.
7 Set out a listing of your top five suppliers and customers for the period under review.
8 Confirm, if appropriate, that VAT and PAYE compliance has been adhered to for the course of the period.
9 f there has been any correspondence or exchanges with the tax authorities in this regard, these should be
included. f none, please reply none.
10 Set out what special reporting requirements the various regulators governing your industry require. f none
please reply none.
11 Set out clearly the procedures for information technology and manual systems in operation to ensure that the
transactions are initiated, recorded and processed correctly.
12 Set out the means for communicating to the directors, financial information, how this happens, when and in what
form.
13
Set out clearly how the company has responded to the risks arising from information technology, in particular,
disaster recovery, unauthorised access and improper use. Attach copy of your existing plans if any.
14 Set out the directors' assessment of risk of fraud, the process for identifying such risk, and how they
communicated this to the appropriate persons within the organisation.
15 Set out a note regarding:
(i) Accounting records in use and the
(ii) nternal control procedures applied
(iii) Along with sample documents for various transactions
(iv) A flow chart of the accounting processes.
16 Set out whether there have been any breaches of any laws or regulations governing the conduct of your
company.
17 Please detail the reasons for and nature of legal advice taken during the period. f none, reply none.
18 Do the directors acknowledge their responsibility for maintaining proper books of account (RO)/ adequate
accounting records (N), and confirm that proper books of account/adequate accounting records have been
kept? Answer Yes or No
19 Please set out a summary of the insurance in place under each of the following headings:
(i) P..
(ii) Buildings
(iii) Content
(iv) Employer Liability
(v) Liability and Public Liability
(vi) Other (Specify)
20 Please detail any changes in your activities during the course of the last period that are fundamental to the
operation of the business, if none, please reply none.
CIient Work Programme - OptionaI
11/10/2010 Page 95
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Appendix 1
31 December 2010
Return to ndex
To be sent to the CIient FinanciaI ControIIer prior to the compIetion of the Audit
PIanning Memorandum
CIient Work Programme - OptionaI
21 Were there any accounting breakdowns during the course of the last period?
Answer Yes or No
22 Were there any undue delays in processing transactions during the course of the last period?
Answer Yes or No
23 Was the basis of accounting consistent with previous periods?
Answer Yes or Noo
24 Do the books and records include all assets and liabilities in sufficient detail?
Answer Yes or No
25 Do management acknowledge their responsibility for the design and implementation of internal controls, to
protect against fraud or error?
Answer Yes or No
26 Do management acknowledge their responsibility for the preparation and fair presentation of financial
statements?
Answer Yes or No
27 Do management confirm that the financial records are complete and accurate?
Answer Yes or No
28 Provide a listing of all journal entries included in the nominal ledger along with full narration for each.
29 Provide a copy of the most recent cash flow forecast, budget and projections. Set out the basis for the
assumptions of each. f none, reply none.
30 Provide a copy of the current bank mandate.
31 For each director please provide copy of driver' licence/passport (if not on file already).
32 Supply copies of all board minutes held in the last period, if any. f none, reply none.
33 Provide copies of all correspondence and reports during the period from the regulatory authorities, including, but
not limited to Health & Safety, Environmental Health, Fire nspector, Licensing Officers and other specific to the
industry. f none please reply none.
I confirm the replies given and attachments to be true and complete.
Financial Controller:
Signed..........
Dated...........
I have read, understood and agreed with replies and queries. I have informed my co-directors.
Director :
Signed . .........
Dated..........
11/10/2010 Page 96
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Appendix 2
31 December 2010
InitiaIs Date
Prepared by:
Reviewed by:
CIient Fraud Questionnaire - OptionaI Return to ndex
Question # Questions
Yes No
Attendees: Insert Client representative
Insert name of auditor conducting interview
1
Do you have any knowledge of any fraud or suspected fraud
that could result in a material misstatement of the financial
statements?
If Yes, please give particulars:
2
Have there been any allegations of fraud within or against the
Company during the financial period?
If Yes, please give particulars:
3
Have any types of fraud ever occurred within the Company?
If Yes, please state what types of fraud have occured:
4
Do you know of any unusual activity relating to making journal
entries and other adjustments in the accounts?
If Yes, Please give particulars:
5
Record Response here:
6
Record Response here:
7
Record Response here:
Where do you believe the greatest risk of fraud is likely to occur in the Company?
How do you monitor operations and procedures in order to prevent or detect fraud?
Meet with those charged with corporate governance (Board of Directors or a Director
representing the Board) and a member of management/senior staff (separate to the Board) to
discuss Fraud. Use the Checklist below as a template to record the discussion. Copy and paste
the template for each person you speak to:
What controls has management established to manage fraud risks that have been
identified, or that prevent, deter and detect fraud?
11/10/2010 Page 97
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Appendix 2
31 December 2010
InitiaIs Date
Prepared by:
Reviewed by:
CIient Fraud Questionnaire - OptionaI Return to ndex
Question # Questionnaire #2
Yes No
Attendees: Insert Client representative
Insert name of auditor conducting interview
1
Do you have any knowledge of any fraud or suspected fraud
that could result in a material misstatement of the financial
statements?
If Yes, please give particulars:
2
Have there been any allegations of fraud within or against the
Company during the financial period?
If Yes, please give particulars:
3
Have any types of fraud ever occurred within the Company?
If Yes, please state what types of fraud have occured:
4
Do you know of any unusual activity relating to making journal
entries and other adjustments in the accounts?
If Yes, please give particulars:
5
Record Response here:
6
Record Response here:
7
Record Response here:
Where do you believe the greatest risk of fraud is likely to occur in the Company?
How do you monitor operations and procedures in order to prevent or detect fraud?
What controls has management established to manage fraud risks that have been
identified, or that prevent, deter and detect fraud??
11/10/2010 Page 98
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Appendix 2
31 December 2010
InitiaIs Date
Prepared by:
Reviewed by:
CIient Fraud Questionnaire - OptionaI Return to ndex
Question # Questionnaire #3
Yes No
Attendees: Insert Client representative
Insert name of auditor conducting interview
1
Do you have any knowledge of any fraud or suspected fraud
that could result in a material misstatement of the financial
statements?
If Yes, please give particulars:
2
Have there been any allegations of fraud within or against the
Company during the financial period?
If Yes, please give particulars:
3
Have any types of fraud ever occurred within the Company?
If Yes, please state what types of fraud have occured:
4
Do you know of any unusual activity relating to making journal
entries and other adjustments in the accounts?
If Yes, please give particulars:
5
Record Response here:
6
Record Response here:
7
Record Response here:
Chartered Accountants Ireland - All rights reserved
Where do you believe the greatest risk of fraud is likely to occur in the Company?
How do you monitor operations and procedures in order to prevent or detect fraud?
What controls has management established to manage fraud risks that have been
identified, or that prevent, deter and detect fraud?
11/10/2010 Page 99
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Appendix 3
31 December 2010 Return to ndex
Confirmation ScheduIe for Debtors CircuIarisation, Creditors CircuIarisation & Bank Letters
GeneraI Ledger BaIance
Customer Name or Bank Account Reference Ledger BaIance Confirmed Amount Date Confirmed Difference ReconciIed Accepted Exceptions Noted
TotaI
% of TotaI Confirmed
11/10/2010 Page 100
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Staff Independence Confirmation - OptionaI
Return to ndex
Staff Name: Insert Staff Name
Question # Audit Programme Yes No
1
Have you received a significant benefit by way of goods or
services, or hospitality from this client?
If Yes, please give particulars:
2
Have you been an employee of this audit client within the
last two years?
3
Are you intending to join or currently negotiating
joining this audit client?
4
Do you have any mutual business interests with this audit
client or with an officer/employees of this client?
If Yes, , please give particulars:
5
Do you or anyone closely connected with you have any
beneficial or trustee investments in this audit client?
If Yes, please give particulars:
6
Do you or anyone closely connected with you have a
Beneficial interest in a trust having a shareholding in this
client?
If Yes, please give particulars:
7
s anyone closely connected with you the trustee of a trust
which holds shares/interests in this audit client?
If Yes, please give particulars:
Signed
Name Insert Staff Name Date:
To be completed by each member of staff or other individual involved in or connected with
In order to compIy with Audit ReguIations, the firm is required to obtain confirmations from
aII those invoIved in audit work on [Insert Client Name] . PIease therefore compIete and
return the form to [Insert Partner/RI Name] , the audit compIiance principaI.
11/10/2010 Page 101
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
Insert Client Name on Frontsheet Appendix 5
31 December 2010 Audit MateriaIity 0
Performance MateriaIity 0
InitiaIs Date
Using the Work of an Auditors Expert Prepared by:
Reviewed by:
Return to ndex
Audit Programme
ScheduIe /
Comment InitiaIs Date
1 Determine in what area's the use of an auditor's expert is
required. SA(UK&)620(8)
2 Evaluate whether the auditor's expert has the necessary
competence, capabilities and objectivity for the auditor's
purposes. This shall include inquiry regarding interests and
relationships that may create a threat to that experts objectivity.
SA(UK&)620(9)
3. Obtain a sufficient understanding of the field of experience of the
auditor's expert to determine the nature, scope and objectives of
that experts work for the auditors purposes and to evaluate the
adequacy of that work. SA(UK&)620(10)
4. Agree in writing with the auditor's expert the nature, scope and
objectives of that expert's work, the respective roles and
responsibilities of that auditor and that expert, the nature, timing
and extent of communication between the auditor and that expert
including the form of any report to be provided by that expert and
the need for the auditor's expert to observe confidentially
requirements. SA(UK&)620(11)
5 nclude copies of agreements with auditor's experts and their
subsequent report's in the audit documentation.
6 Evaluate the adequacy of the auditor's expert's work including the
relevance and reasonableness of the auditor's expert's
conclusions, the assumptions and methods adopted and the
relevance, completeness and accuracy of any source data used.
SA(UK&)620(12)
7 f it is determined that the work of the auditor's expert is not
adequate agree with the expert on the nature, timing and extent
of further work to be performed or perform additional procedures
appropriate to the circumstances. SA(UK&)620(13)
8 The auditor shall not refer to the work of an auditor's expert in an
auditor's report containing an unmodified opinion unless required
by law to do so. SA(UK&)620(14)
9 f the auditor makes reference to the work of an auditor's expert
in the auditor's report because such reference is relevant to an
understanding of a modification to the auditor's opinion, the
auditor shall indicate in the auditor's report that such reference
does not reduce the auditor's responsibility for that opinion.
SA(UK&)620(15)
CONCLUSION
Signed
Date
Reviewed
Date
Chartered Accountants Ireland - All rights reserved
The foIIowing work programme wiII not be appIicabIe in audits where the engagement auditor has not
obtained the services of an auditors expert.
If expertise in a fieId other than accounting and auditing is necessary to obtain sufficient appropriate audit
evidence the auditor shaII determine whether to use the work of an auditor's expert. This may be required
in reIation to such matters as the vaIuation of compIex financiaI instruments, fixed assets and intangibIe
assets. ISA(UK&I)620(7)
Subject to the matters noted for the reviewer, in my opinion sufficient audit assurance has been obtained to enable us to
conclude that the work of an audit expert may be relied upon for inclusion in the financial statements.
11/10/2010 Page 102
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
CIient Name A6
Year End
MEMORANDUM OF SIGNIFICANT MATTERS

Page 1 oI 5
A memorandum of significant matters should be compiled, following the steps outlined here, to
facilitate partner review. Cross reference the points to the audit file. This schedule can be used as
a template for the Memorandum.

!" SUMMARY OF SIGNIFICANT FLUCTUATIONS IN THE PROFIT AND LOSS ACCOUNT AND
BALANCE SHEET, WITH COMPARATIVES, AND EXPLANATIONS. (ISA(UK&I)520(6))

Current Year Previous Year Difference Reference
Profit and Loss Account /C'000 /C'000 /C'000

1. ncome/expense
heading

Explanation:


2.
Explanation:


3.
Explanation:



Current Year Previous Year Difference Reference
BaIance Sheet /C'000 /C'000 /C'000

1. Balance
Explanation:


2.
Explanation:


3.
Explanation:



S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
CIient Name A6
Year End
MEMORANDUM OF SIGNIFICANT MATTERS

Page 2 oI 5
2. SUMMARY OF THE KEY ISSUES ARISING DURING THE COURSE OF THE AUDIT THAT NEED
TO BE BROUGHT TO THE ATTENTION OF THE PARTNER AND DETAILS OF DISCUSSIONS
WITH MANAGEMENT OF THESE MATTERS (ISA(UK&I)230(10))

Matter Reference
2.1

2.2

2.3

2.4

2.5


3. BRIEF DESCRIPTION OF ANY SIGNIFICANT CHANGES IN THE CLIENT'S ACTIVITIES.

Matter Reference
3.1

3.2

3.3


4. EXPLAIN THE OUTCOME OF AUDIT WORK DONE TO SATISFY THE KEY RISK AREAS
IDENTIFIED IN THE PLANNING MEMORANDUM. CROSS REFERENCE TO THE WORK
PROGRAMME.

Risk (and reIated controI if any) Audit Work done to address
the risk, and the outcome of
the work
Reference
4.1

4.2

4.3

4.4

4.5


5. DETAIL ANY APPARENT MISSTATEMENTS/OMISSIONS OR MATERIAL INCONSISTENCIES
BETWEEN OTHER INFORMATION IN THE ANNUAL REPORT AND THE FINANCIAL
STATEMENTS. (ISA(UK&I)720(2))

Matter Reference
5.1

5.2

5.3

S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
CIient Name A6
Year End
MEMORANDUM OF SIGNIFICANT MATTERS

Page 3 oI 5


6. EXPLAIN ANY CHANGES IN THE ACCOUNTING POLICY/TREATMENT APPLIED TO
SIGNIFICANT ITEMS.

Matter Reference
6.1

6.2

6.3


7. UNRESOLVED MATTERS FOR THE ATTENTION OF THE PARTNER (INCLUDING
INCONSISTENT INFORMATION (ISA(UK&I)230(11)).

Matter Reference
7.1

7.2

7.3


8. EXPLAIN ANY MATERIAL ADJUSTMENTS NOT YET PROCESSED.

Matter Reference
8.1

8.2

8.3


9. SUMMARISE ANY DEFICIENCIES IN THE COMPANY'S INTERNAL CONTROLS INCLUDING
SIGNIFICANT DEFICIENCIES.

Matter Reference
9.1

9.2

9.3


S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
CIient Name A6
Year End
MEMORANDUM OF SIGNIFICANT MATTERS

Page 4 oI 5
10. EXPLAIN ANY ETHICAL CONSIDERATIONS THAT HAVE ARISEN AND HOW THEY HAVE
BEEN ADDRESSED

Matter Reference
10.1

10.2

10.3



11. SUMMARISE ANY INSTANCES OF FRAUD OR SUSPECTED FRAUD HIGHLIGHTED DURING
THE AUDIT.

Matter Reference
11.1

11.2

11.3


12. DEPARTURE FROM A REQUIREMENT OF AN ISA AND/OR FRS OR FAILURE TO ACHIEVE AN
OBJECTIVE (ISA(UK&I)230(11)).

Matter Reference
12.1

12.2

12.3


13. OUTSTANDING NOTES AND QUERIES. COPYRIGHT CHARTERED ACCOUNTANTS IRELAND

Matter Reference
13.1

13.2

13.3


S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
CIient Name A6
Year End
MEMORANDUM OF SIGNIFICANT MATTERS

Page 5 oI 5
14. MATTERS FOR FINAL MEETING WITH CLIENT.

Matter Reference
14.1

14.2

14.3


15. EXPLAIN ANY SIGNIFICANT COST OVERRUN AGAINST BUDGET.

Matter Reference
15.1

15.2

15.3



16. PROPOSED AUDIT OPINION AND JUSTIFICATION OF THIS.



Prepared by: Accountant in charge
Date
Reviewed by Audit Manager
Date
Reviewed by Audit Partner
Date





Chartered Accountants Ireland
This document may be used only in accordance with the terms oI the End User Licence Agreement in the main PQA
workbook.
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K





Amend the red text throughout the document to suit the specific assignment details.

ENTER CLIENT NAME
Audit Planning Memorandum

ENTER YEAR END




S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
__________________________________________


TabIe of Contents

Section
I. Engagement Objectives, DeIiverabIes and Key Dates
II. KnowIedge of the Entity
III. InternaI ControI Environment
IV. Risk Assessment
V. Nature, Timing and Extent of the Audit
VI. EthicaI and Other Matters
VII. Audit PIanning Memorandum Sign off


S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 1 oI 15
I. Engagement Objectives, DeIiverabIes and Key Dates Comments/
References

The audited Iinancial statements Ior CLIENT NAME will be made available to
the Directors at the end oI our Audit (INSERT ESTIMATE OF AUDIT
COMPLETION DATE). We will render an opinion on the true and Iair
presentation oI the Iinancial statements in accordance with accounting principles
generally accepted in the (Republic of Ireland, Northern Ireland, or
otherwise) and (DELETE AS RELEVANT) COMPANIES ACTS 1963 to
2009 / COMPANIES ACTS 2006 Ior the year ending ENTER YEAR END
DATE. Our audit oI the Iinancial statements is to be conducted in accordance
with APB International Standards on Auditing (UK and Ireland) Ior audits oI
Iinancial statements Ior periods ending on or aIter 15
th
December 2010.

Please reIer to engagement (Attach and reference Engagement) letter Ior
Iurther outline oI the terms oI our service deliverable to CLIENT NAME.

Engagement Letter is
attached at
_________
f the Engagement Letter outlines the provision of non-audit services, list here
the ethical safeguards taken to ensure that ndependence and objectivity are not
challenged. Refer to the Acceptance of Appointment or Reappointment section
at B1, point 30. Consider safeguards e.g. When performing Accounts Preparation
or Taxation services, the audit partner is/is not involved in making key
management or judgmental decisions on behalf of the client and the client has
acknowledged this in writing (incorporate into engagement letter)




List the your main reporting requirements oI which you are currently aware e.g.
Audit Report, Report to ODCE as consequence oI breach oI Section 31 oI the
Companies Act 1990 (ROI), Report under Criminal Justice Act 2003 (NI), etc.


Outline the Key Dates on which deliverables are expected to be completed, Ior
example (Delete/Insert as required):


Client Work Programme or audit requirements delivered to client

Communication oI Audit Plan to client

Management Representation Letter

Financial Statement Approval Date

Audit Report Date

Clients Annual Return Date

Corporation Tax Filing Date

Etc.




















S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 2 oI 15
II. KnowIedge of the Entity
Nature of the Entity:
!"#$ &' ()*+* ,*("-.+ /"$ 0* &0("-#*, 0$ "+1-#2 ()* 3.-*#( (& 3&/4.*(* ()* 5.-*#( 6&71 87&27"//*9
:** ;44*#,-< =9

The company operates in the INSERT INDUSTRY industry. Its main sources oI income are Irom the
sale of / provision of:

List main products or services that client provides/supplies

The company has been in business since INSERT YEAR and has on average INSERT EMPLOYEE
NUMBER employees. The average experience oI the staII at management level is X years and the
average overall experience oI all staII is X years.

The client has a number oI suppliers, the top 5 oI which are:

List top 5 suppliers by Name and what they supply

The clients customers mainly consist oI enter business type and the majority oI its revenue generating
transactions are cash/credit sales. The clients top 5 customers are:

List top 5 customers by Name and what they buy

The company operates out oI (number) geographical locations including:

List geographical locations, e.g. Galway, Cork, Liffey Valley, Swords, Limerick,
The main business objectives oI the client are:

List Business Objectives (Financial and Non Financial)

Finance Factors:
The company is mainly Iinanced by Internally Generated Capital (e.g. Revenues)/Bank Loans/Share
Capital/Loans Irom Directors/Loans Irom Related Parties (e.g. Parent or subsidiary Company)/Venture
Capital/Grant Giving Agencies/etc.

The Key Financial Indicators used by the Directors/management are:
List main Financial Indicators per discussion with management, e.g. Bank Balance and
Cash Reserves, Gross Profit Margin, Net Profit Margin, Gearing Levels, Return on
Capital Employed, Cost Levels, Revenue, etc.

There has/has not been any changes in Accounting Policies during the year. The Iollowing accounting
policies were amended during the year:

List Accounting Policies that were changed and state managements reason for change

A copy oI the reviewed prior year signed Iinancial statements is attached at INSERT WORKING
PAPER REFERENCE and a Copy oI the reviewed Financial Statements Filed with
CRO/Companies House is attached at INSERT WORKING PAPER REFERENCE
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 3 oI 15
II. KnowIedge of the Entity
Ownership and Organisation Structure:




>"(* &'
;44&-#(/*#(
?&.,-#2 "( 8*7-&,
@#,
?&.,-#2 "( :("7( &'
8*7-&,

>-7*3(&7+
A7,-#"7$
+)"7*+
87*'*7*#3*
+)"7*+
A7,-#"7$
+)"7*+
87*'*7*#3*
+)"7*+








We have obtained the Share Register and reviewed on INSERT DATE SHARE REGISTER WAS
REVIEWED and noted no/the following additional shareholdings:

List Names of other shareholders with holdings >15 and Number of shares held
Other Shareholders cumulatively hold X Ordinary Shares, representing X oI the
shareholding

A list oI the Key Management StaII and their responsibilities are as Iollows:

List Key Management Staff (including Directors), their respective job title, area of
responsibility, number of staff reporting to them.
List any exceptions noted.

Main Audit Contacts in CIient

We have agreed with the Board oI Directors to communicate directly with all directors/INSERT
NAME OF DIRECTOR.

Following in italics only applicable if not communicating with all directors]It was agreed during
our discussions with the BC:@DE C;!@ AF >BD@5EAD on BC:@DE >;E@ AF >B:5G::BAC
that all communications to BC:@DE C;!@ AF >BD@5EAD will then be communicated bv )-/H)*7
to the rest of the board. All communications between us and the Board of Directors will be addressed
to the Board of Directors and delivered to BC:@DE C;!@ AF >BD@5EAD. This has been agreed in
the Engagement Letter/letter dated BC:@DE >;E@ AF I@EE@D attached in working paper
reference BC:@DE D@F@D@C5@9


During the course oI the audit we will be dealing with:

List client contacts and the area oI the audit Ior which you will be dealing with them (e.g.
AN Other Payroll)
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 4 oI 15
II. KnowIedge of the Entity
Industry Overview

The INSERT CLIENT`S INDUSTRY is currently experiencing many economic
challenges/economic growth. In the past 12 months the industry has
contracted/expanded/experienced very little growth.

The Iollowing general market conditions are most aIIecting the perIormance oI the company:
List top 5 economic or industry factors affecting client (e.g. Credit Crunch has
restricted availability of finance; increase in environmental protection legislation
has fueled demand for more green efficient product, etc.)

The company has generally responded to these industry Iactors by:

List main responses from client in relation to challenges presented by industry (e.g.
Restructured business to cut costs and reduce working capital requirements,
disposed of non essential assets, increased credit control activities, increased
production of product to meet demand, etc.)

The company has a number oI competitors including:

List clients top 5 main competitors

Other general industry inIormation has been reviewed and attached at working paper reIerence
INSERT REFERENCE
ReIated Parties

We discussed with management and/or Directors on INSERT DATE and the Iollowing points were
noted:

Date of Meeting/Discussion: INSERT DATE
Meeting/Discussion Participants: INSERT ATTENDEES` NAMES
Meeting Location/Discussion: INSERT LOCATION

Obtained a schedule oI related party transactions entered into during the year, attached at working
paper reIerence INSERT REFERENCE OR No schedule oI related party transactions was available,
but management and/or directors were aware oI the Iollowing related parties:

List related parties, e.g. Parent or subsidiary companies, transactions with family
members and friends, etc., and purpose of transaction or business rationale for
engaging in transaction

All/Some transactions were/were not on an arms length basis.
Director/management approval was obtained Ior any transactions below an arms length
transaction
We noted Adequate/Inadequate disclosures proposed Ior the Financial statements Ior
related party transactions (in accordance with GAAP (e.g. FRS 8) and Companies Acts
requirements)
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 5 oI 15
II. KnowIedge of the Entity

We reviewed prior year Iinancial statements attached at INSERT REFERENCE to ensure related
party transactions identiIied are considered in current year audit.

We will conduct our audit and be mindIul oI existence oI other related party transaction based on
reviewing minutes oI meetings, scanning listings oI transactions when selecting items Ior testing,
Iurther discussion with management, testing material transactions, reviewing solicitor conIirmations
and reviewing bank statements, etc.

Related party transactions have been discussed with all members oI the audit team on INSERT DATE
(Not applicable iI only one person on audit team in total, i.e. partner/principal)
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 6 oI 15
II. KnowIedge of the Entity
Consideration of Laws and ReguIations

There are a number oI regulatory Iactors relevant to the conduct oI the company`s business. A list oI
the main regulations include:

List the main Regulations affecting client, examples include:
National minimum wage legislation (ROI: National Minimum Wage Act 2000. NI:
National Minimum Wage Act 1998).
Companies Legislation (ROI: Companies Acts 1963 - 2009. NI: Companies Act 2006)
Tax Legislation
Health and Safety legislation
Building regulations
Criminal and Anti Money Laundering Legislation
Etc.

We discussed with management and/or Directors on INSERT DATE and the Iollowing points were
noted:

Date of Meeting/Discussion: INSERT DATE
Meeting/Discussion Participants: INSERT ATTENDEES NAMES
Meeting Location/Discussion: INSERT LOCATION

There were no breaches oI laws and regulations identiIied during the year OR the Iollowing breaches
oI laws and regulations were noted by directors/management during the year

List breaches and state whether or not auditor has duty to issue further report and/or
impact on audit work
FinanciaI Performance PIanning AnaIyticaI Review:

We obtained the draIt Iinancial Iigures Ior the reporting period (draIt Financials or Trial Balance) and
Ior the period up to INSERT CURRENT DATE (e.g. latest management accounts) Irom the client
and attached at INSERT REFERENCE. Based on this Iinancial data we have conducted a
preliminary analytical review and our workings are attached at INSERT REFERENCE.

Based on knowledge accumulated to date, review oI supplementary inIormation (e.g. budgets/Iorecasts
prepared by client, review oI minutes, review oI bank statements, etc.) and discussions with
management on INSERT DATE the Iollowing main perIormance issues have been identiIied:

List main reasons for performance in reporting period and to date (e.g. Sales have
decreased due to significant customer going into liquidation, margins have increased due
to increased efficiencies as result of investment in new machine, etc.)

The key Iinancial ratios oI the company are:

! Gross ProIit Margin
! Acid test Ratio
These financial ratios have/have not changed in accordance with our expectations.
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 7 oI 15
II. KnowIedge of the Entity
Based on review oI budgetary inIormation and discussion with management, the company has/has not
perIormed as expected.

Based on preliminary analytical review we will carry out the Iollowing audit work:

Enter speciIic tests which will be carried out as a result oI the planning analytical review.

Or

See the Risk Assessment below where these are set out





FinanciaI Performance PreIiminary assessment of Going Concern:

Based on the above planning analytics, the Iact that the company has/has not perIormed as expected,
consideration oI industry Iactors identiIied above and objectives oI the business the Iollowing matters
will be considered as part oI Going Concern:

List any matters that arise that may lead to a concern over to going concern, Ior example:
Management`s expectations and consideration of going concern for a period of 12
months from the date of signing the audit report.
The Credit Crunch and the unavailability of finance is a matter of concern for the
directors.
There are significant distributable reserves available to meet any short term shortfall in
expectations
Etc.

As a result oI planning analytics and consideration oI going concern to date, the Iollowing areas will
be determined a key risk aIIecting going concern, dependent upon materiality.

List Key Risks affecting Going Concern, e.g. Revenue/Turnover, Bad Debts, Impairment
of Investment Properties, etc.

S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 8 oI 15

III. INTERNAL CONTROL ENVIRONMENT copyright Chartered Accountants IreIand
Understanding the Entity`s Internal Control Environment
Section C is used to record the accounting systems in a way that is suIIicient Ior the purposes oI
complying with Auditing Standards and legislation.

The Iollowing aspects oI the business operations provide an overview oI the internal control
environment in the company:

List main factors of clients control environment, for example:
Management are experienced and have been with the company for X years and hold
INSERT QUALIFICATIONS
Finance Staff/Bookkeeper has been with the company X Years and is a INSERT
QUALIFICATION
The organisational structure identified in Part II above is/is not complex and management
and/or Directors are involved in the daily operations of the business.
Etc.

Management attitude to internal control is/is not positive. Management demonstrate their attitude to
internal controls by:

List the key controls operated by the company over these key areas
1. Completeness oI Income
2. Approval oI Expenses
3. Payment oI Wages
4. Other key areas



Conclusion: Based on results oI testing perIormed above as at INSERT DATE, we will
rely on some/all oI the controls above. Any control deIiciencies have been discussed
with management and any signiIicant deIiciencies have been communicated in writing
to the directors

List the controls on which you intend to place reliance in your audit.

See the Risk assessment below where our testing of key controls is considered.

Summary of Controls review (subject to test results) and substantive audit
procedures:

We have planned our audit procedures to place some/no reliance upon controls
(See Controls to be tested above) and perIorm substantive procedures on the
areas oI risk identiIied above.



S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 9 oI 15

IV. Risk Assessment Schedule/
References
Consideration of matters forward from prior years

The Iollowing matters Iorward were noted in the prior year working papers:

List prior year matters noted in prior year, for example:
It was noted that debtors balances relating to XYZ ltd and ABC ltd were
over one year old and had not been written off on the basis that management
were confident that payment would be forthcoming.


We have reviewed the prior year summary oI adjusted and unadjusted diIIerences and
noted errors arising in the Iollowing areas:

List areas where error was noted in prior year, for example:
Sales
In perIorming our audit procedures we will pay particular attention to the areas where
misstatement occurred in the prior year in order to determine iI there are any similar errors
in the current year.


Risk of Fraud:

Our audit will be conducted with proIessional skepticism and using sampling and testing
procedures that are in accordance with International Standards on Auditing. Based on our
understanding oI the client obtained above and Irom our previous audit and non-audit
experience with this client, there is/is not a history oI Iraud occurring in the company.

The risk oI Fraud was discussed with the audit team on

We discussed Iraud with Management/Directors on

Based on discussion with management, the following/no occurrences oI Iraud were/was
suspected, alleged or actually transpired in the company during the year.

Based on a similar understanding we have identiIied the Iollowing areas with a higher
potential risk oI Iraud:

1. Revenue Recognition (Completeness oI Income)
2. Risk oI management over-ride oI controls
3. List any other areas identified as fraud risk here. If a fraud were to occur in
this company, how would it be most likely to happen?



S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 10 oI 15
Risk Assessment: Copyright Chartered Accountants Ireland

Review all oI the inIormation in the plan so Iar including your understanding oI the client, the industry
and the control environment. On this basis, list at least 5* key risks that you have identiIied and detail
how they will be addressed in the audit.
Risk Identified Level
of Risk
Controls
Testing
Response to Risk Ref
H/M/L Yes/No
Example Risks:


Debtors may not be
recoverable. Planning
analytics indicate that
debtors have increased
signiIicantly.
High No We will review management`s
provision against bad debts. We will
challenge the assumptions made and
consider the outturn oI last year`s
provision. We will ensure that we have
suIIicient Ior speciIic large debtors
including Z Limited and Y Limited.
H1:Tests 5,
to 12

All sales may not be
recorded
Med Yes We will test controls over income
completeness such as supervision by
management. We will also test sales
orders to completed sales
N1: Tests 3
and 4

Stock levels oI the
company`s key product
may be too high and
may not be saleable
High No We will review post year end sales
volumes and sale prices. We will review
Iuture sales budgets and Iorecasts
G1: Test 13




`It is suggested that five risks should be identified. This number mav be varied in accordance with the
circumstances of the engagement. Even on verv straightforward audits, risks arising from completeness of income,
recoverabilitv of debtors and relationships with related parties mav arise. On more complex or regulated audits,
the risk assessment will be much more extensive.

Materiality
Materiality has been calculated as follows (See B2 for detail documentation):

Amount Area
Overall Materiality
Planning Materiality
Specific Materiality Eg: Directors` loans
Clearly Trivial

delete if not testing controls] II our tests oI controls produce results that deem the controls unreliable,
we will revisit the planning section to amend the extent oI substantive testing that is required.

II, during the course oI our audit, we identiIy any additional risks we will revisit planning and make a
note oI the matter in section A3 (Matters Forward).
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 11 oI 15

V. NATURE, TIMING AND EXTENT OF THE AUDIT
Overall Approach to Audit
Task Detail Person Responsible
Discuss Audit Plan with
Directors
Insert date of discussion here
(or reference copy of letter
sent to directors)

Assignment Approach and
Tailoring the work program
Summarise approach and
indicate what areas are to be
tailored for this client.

Stock-take attendance Insert date of stocktake
Issue oI ConIirmation Letters Complete Point 3 of the Audit
Planning Checklist at B1.2.

Number oI Locations Insert clients locations to be
visited during the audit -
refer to part ii for list of all
clients locations

Resource Planning Summarise timetable, budget
and staff to be involved on
this engagement

Expected content oI SigniIicant
Matters Memorandum
Based on planning and prior
year matters forward,
summarise any issues that you
expect to be included in
significant matters
memorandum

Post balance sheet events Is a significant delay expected
between the audit fieldwork
and the approval of the
financial statements or the
signing of the audit report?
Do any special arrangements
have to be made for this?

Independent Partner Review iI
appropriate
Insert who is conducting hot
file review and reasons why
one is required (ref firms
ISQC1 procedures)


Audit Sampling

Summarise planned approach to sample selection for Tests of Controls here (or attach and refer to
firms overall sampling strategy) eg judgemental approach

Summarise planned approach to sample selection for Tests of Detail or Substantive Tests here (or
attach and refer to firms overall sampling strategy) eg judgemental approach
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 12 oI 15

VI. ETHICAL AND OTHER MATTERS ScheduIe/Reference
Consider the timing and nature oI other reports that may be
required by the client or by statute
E.G. Internal Control Report,
Grant Application, Full and
Abridged Audit Report, etc.
Consider any issues Ior possible inclusion in the letter to those
charged with governance
E.G. Significant weakness in
Internal Controls, etc.
Consider any issues Ior possible inclusion in the letter oI
representation
E.G. In addition to points noted
in Planning Memorandum above,
existence of contractual
arrangements/agreements,
disclosure of related party
transactions, etc.
Consider and ensure documentation oI any saIeguards to be taken
in order to satisIy independence and objectivity requirements
under the Ethical Code
E.g. Provision of Non Audit
Services and Safeguards taken as
a result, etc.
Ensure Ethical requirements have been discussed with team
members and conIirmations oI independence have been obtained
Obtain independence
confirmations from team
members and reference on
working papers
Summarise any other matters arising


S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
_______________________________________

Copyright Chartered Accountants reland Page 13 oI 15

VII. Audit PIanning Memorandum Sign-Off

I have read the above Audit Planning Memorandum and related attachments and understand the broad
approach to the areas on which we need to obtain audit evidence so that the audit is perIormed in an
eIIective manner and have shared it with key engagement team members as deemed appropriate.
All signiIicant risks identiIied have been appropriately assessed and an adequate response has been
reIlected in the audit testing strategy outlined above.
Materiality has been accurately calculated and the assumptions applied Iairly represent the risk
associated with this client.
Name Date
J*'&7* :("7( &' ;K,-(
Prepared By:



Reviewed By:



;K,-( 8."# 7*", 0$ &()*7
;K,-( E*"/ !*/0*7+

Name


Name


Name




8&+( ;K,-( D*L-*M &' ;K,-( 8."##-#2 !*/&7"#,K/ D*L-+-( !"(*7-".-($N
;#".$(-3". D*L-*M "#, D-+1 ;++*++/*#( O;K,-( 8"7(#*7 5&/4.*(-&# A#.$P
I have reviewed our preliminary assessments oI the above in the context oI the
Iinal results oI our audit work. I am oI the opinion that our original
assessments are still valid (iI not, please reIerence re-assessment)

Reviewed By:







Chartered Accountants Ireland
This document may be used only in accordance with the terms oI the End User Licence Agreement in the main PQA
workbook.
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K



IMPORTANT NOTICE: PLEASE READ CAREFULLY BEFORE USING THE PRODUCT

This End User Licence Agreement (the "Licence") is a legal agreement between you (the "Licensee or "you) and
Chartered Accountants reland (the "Institute) of Chartered Accountants House, 47 49 Pearse Street, Dublin 2 (the
"Institute or "we) for this Procedures for Quality Audit (PQA) software product ("Software"), which includes computer
software, the data supplied with it, the associated media, printed materials and any documentation including electronic
documentation (the "Documentation) (together the "PubIication)


1 GRANT AND SCOPE OF LICENCE
1.1 n consideration of your ongoing payment of the
licence fee (which includes the initial purchase
price of the publication and the subsequent
annual licence fee) and in consideration of you
agreeing to abide by the terms of this Licence,
the nstitute hereby grants to you a limited, non-
exclusive, non-transferable, revocable licence to
use the Publication for your own internal
business purposes only in accordance with the
terms of this Licence.
1.2 All intellectual property rights in the Publication
shall be and at all times and for all purposes
remain vested in the nstitute. Risk in the
Publication shall pass to the Licensee as soon as
you open the Publication. You acknowledge and
agree that you are getting a licence to use the
Publication 'as is' and that the nstitute is under
no obligation to provide any upgrades, updates,
fixes, patches or any support or maintenance
services for the Publication.
1.3 BY BREAKNG THE SEAL ON THE CD
PACKAGNG, YOU AGREE TO BE BOUND BY
THE TERMS OF THS LCENCE WHCH WLL
BND YOU AND ANY OTHER USERS OF THS
PUBLCATON. F YOU DO NOT AGREE TO
THE TERMS OF THS LCENCE, THE
NSTTUTE S UNWLLNG TO LCENSE THE
PUBLCATON TO YOU AND YOU MUST
RETURN THE PUBLCATON TOGETHER
WTH ALL ACCOMPANYNG
DOCUMENTATON, WTH THE SEAL
UNBROKEN AND THE CD PACKAGNG
UNOPENED, TO THE NSTTUTE WTHN
SEVEN DAYS OF RECEPT OF THE
PUBLCATON.
2 DISCLAIMER
2.1 The Publication is a guide only and does not
purport to give professional advice. t should,
accordingly, not be relied upon as such. While
every care has been taken by the nstitute in the
preparation of this Publication, the nstitute does
not guarantee the accuracy or veracity of any
information or opinion, or the appropriateness,
suitability or applicability of any practice or
procedure contained therein. Neither the
publisher nor the nstitute shall be liable for any
damage or economic loss, whether arising from
the negligence, breach of contract or otherwise
of the nstitute, its employees, servants or
agents, or of the authors who contributed to the
text.
2.2 The nstitute, shall not be liable for damage or
loss occasioned by actions by you or by any third
party, in reliance upon the Publication, which
result in losses incurred either by you, those for
whom you act as agents, those who rely upon
you for advice, or any third party, or for any
breach of contract by the nstitute in respect of
any inaccurate, mistaken or negligent
misstatement or omission contained in this
Publication.
2.3 All use by you of this Publication and/or the
content in the Publication is at your own risk.
You assume complete responsibility for all risk of
loss resulting from your use of or referring to or
relying on any information obtained from your
use of this Publication. You agree that the
nstitute will not be liable for damages arising out
of your use or your inability to use this
Publication and you hereby waive any and all
claims with respect thereto whether based on
contract, tort or other grounds.
3 LICENSEE'S UNDERTAKINGS
3.1 Except as expressly set out in this Licence or as
permitted by applicable law, you undertake not
to:
(a) use the Publication other than in
accordance with the terms of this Licence
and/or use of the Publication for a purpose
for which it was not designed;
(b) permit other individuals to use the
Publication except under the terms listed
above;
(c) make any translation, modification,
adaptation, arrangement or any other
alteration of all or part of the Publication
(save where such amendments are
required to enable you to carry out audits);
(d) disseminate, give away, hire, lease, offer
or expose for sale or distribute the
Software or Documentation, or another
product wholly or partially derived from any
of the foregoing;
(e) assign, transfer, sell, rent, charge, lease,
sub-licence, loan, translate, merge, adapt
vary, modify or otherwise deal in or
encumber the Publication or use the
Publication on behalf of any third party, or
make available the same to any third party
without the prior written consent of the
nstitute;
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
(f) remove or alter any copyright or other
proprietary notice from the Publication; or
(g) disassemble, decompile, copy, modify or
adapt reverse engineer or create derivative
works based on the whole, or any part, of
the Publication for any purpose except to
the extent permitted by applicable law;
3.2 The Licensee undertakes to supervise and
control the use of the Publication and ensure that
its employees and representatives use the
Publication in accordance with the terms of this
Licence.
3.3 The Licensee undertakes to pay the annual
licence fee for use of the Publication. The annual
licence fee is payable within 30 days from the
date a request for payment is made by the
nstitute. Failure to pay the licence fee on time
will amount to an automatic termination of the
licence. Upon termination, the Licensee warrants
(a) it will immediately cease to use the
Publication and all activities authorised by this
Licence; (b) to immediately pay to the nstitute
any sums due to the nstitute under this Licence;
and (c) to immediately destroy the Publication
(and certify to the nstitute that it has been
destroyed) or return the Publication to the
nstitute at the nstitute's request.
4 INTELLECTUAL PROPERTY RIGHTS
You acknowledge that the Publication contains
confidential information of the nstitute and all copyright,
trademarks and all other intellectual property rights in and
to the Publication and documentation are and shall remain
the property of the nstitute (and where relevant its
licensees). You acknowledge that all rights in the
Publication are licensed (not sold) to you, and that you
have no rights in, or to, the Publication other than the right
to use it in accordance with the terms of this Licence.
Nothing in this Licence shall confer any rights in any
intellectual property rights in the Publication or the
documentation on you. The integrity of the Publication
may be protected by technical protection measures
("TPM) so that the intellectual property rights, including
copyright, in the Publication of the nstitute are not
misappropriated. To the extent the Publication is
protected, you must not attempt in any way to remove or
circumvent such TPM, nor to apply, manufacture, import,
distribute, sell, let for hire, offer, expose or advertise for
sale for hire or have in your possession for private or
commercial purposes, any means whose sole reasonable
purpose is to facilitate the unauthorised removal or
circumvention of such TPM! The provisions of this clause
shall continue to operate after the termination of this
Licence. No part of this Publication shall be reproduced
for resale, stored in a retrieval system for resale, or
transmitted in any form or by any means, electronic,
mechanical, photocopying, recording or otherwise for
resale, without the prior written permission of the
copyright holder.
5 INTEGRITY OF DATA
5.1 You agree that you are the best judge of the
value and importance of your data and that you
will be solely responsible for (a) instituting and
operating all necessary back-up procedures, for
your own benefit, to ensure that data integrity
can be maintained in the event of loss of data for
any reason; and (b) taking out any insurance
policy or other financial cover for loss or damage
which may arise from loss of data for any reason.
5.2 Except as expressly provided herein and to the
extent permitted under applicable law, all
conditions and warranties (express or implied,
statutory or otherwise) are hereby excluded
including without limitation any warranties
implied by the Sale of Goods Act, 1892 as
amended by the Sale of Goods and Supply of
Services Act 1980. Without prejudice to the
generality of the foregoing, the nstitute does not
warrant that the Publication will achieve any
intended result or that the operation by you of
the Publication will be uninterrupted bug or error
free. To the greatest extent permitted by
applicable law, the nstitute excludes any
warranty expressed or implied, statutory or
otherwise as to the quality, accuracy, timeliness,
completeness, merchantability or fitness for a
particular purpose of the Publication and/ or the
content of the Publication.
6 THE INSTITUTE'S LIABILITY
6.1 Nothing in this Licence shall exclude or in any
way limit the nstitute's liability for fraud, or for
death and personal injury caused by its
negligence, or any other liability to the extent that
liability cannot be excluded or limited as a matter
of law.
6.2 Subject to clause 6.1 the nstitute shall not be
liable under or in connection with this Licence or
any collateral contract for loss of income, loss of
business profits or contracts, business
interruption, loss of the use of money or
anticipated savings, loss of information, loss of
opportunity, goodwill or reputation, loss of,
damage to or corruption of data.
6.3 The nstitute shall not be liable under or in
connection with this Licence for any indirect or
consequential loss or damage of any kind
howsoever arising and whether caused by tort
(including negligence), breach of contract or
otherwise.
6.4 The nstitute expressly disclaims any and all
liability for any infection by computer virus, bug,
tampering, unauthorised access, intervention,
alteration or use, fraud, theft, technical failure,
error, omission, interruption, deletion, defect,
delay, or any event or occurrence beyond the
control of the nstitute, which corrupts or affects
the administration, security, fairness and integrity
or proper conduct of any aspect of the
Publication. Subject to clause 6.1 and clause
6.2, the nstitute's maximum aggregate liability
under or in connection with this Licence, or any
collateral contract, whether in contract, tort
(including negligence) or otherwise, shall be
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K
limited to a sum no greater than one hundred
(C100) euro.
6.5 You hereby expressly permit the nstitute and its
representatives, at all reasonable times and on
reasonable notice, to inspect and have access to
any premises at which the Publication being kept
or used, to the computer equipment located
there, and to any records kept pursuant to this
Licence, for the purpose of ensuring compliance
with the terms of this Licence.
6.6 You hereby agree to defend, indemnify, keep
indemnified and hold the nstitute, its officers,
directors, employees, licensors and suppliers
harmless from and against any liabilities, claims,
actions, proceedings, damages, judgments,
losses, costs and expenses (including
reasonable legal fees) arising out of your
downloading, installation and use or misuse of
the Publication or if any content which is
distributed and/or republished by you using the
Publication infringes the intellectual property
rights or other proprietary rights of a third party or
is illegal.
6.7 This Licence sets out the full extent of the
nstitute's obligations and liabilities in respect of
the supply of the Publication. There are no
conditions, warranties, representations or other
terms, express or implied, that are binding on
the nstitute except as specifically stated in this
Licence. Any condition, warranty,
representation or other term concerning the
supply of the Publication which might otherwise
be implied into or incorporated in this Licence,
or any collateral contract, whether by statute,
common law or otherwise, is hereby excluded
to the fullest extent permitted by law.
7 TERMINATION
7.1 This Licence is effective until terminated. The
nstitute may terminate this Licence immediately
by written notice to you if:
(a) you commit a material or persistent breach
of this Licence which you fail to remedy (if
remediable) within 14 days after the
service on you of written notice requiring
you to do so; or
(b) a petition for a bankruptcy order to be
made against you has been presented to
the court; or the Licensee (where it is a
company) becomes insolvent or unable to
pay its debts (within the meaning of section
214 of the Companies Act 1963-2009),
enters into liquidation, whether voluntary or
compulsory (other than for reasons of bona
fide amalgamation or reconstruction),
passes a resolution for its winding-up, has
a receiver or examiner, trustee, liquidator
or similar officer appointed over the whole
or any part of its assets, makes any
composition or arrangement with its
creditors or takes or suffers any similar
action in consequence of its debt, or
becomes unable to pay its debts (within
the meaning of section 214 of the
Companies Act 1963-2009).
7.2 Upon termination or expiry of this Licence for any
reason (a) all rights granted to you under this
Licence shall cease and you must cease all
activities authorised by this Licence; (b) you must
immediately pay to the nstitute any sums due to
the nstitute under this Licence; and (c)
immediately upon termination, the Licensee shall
destroy the Software and all copies of the
Software (and certify to the nstitute that you
have done so) or immediately return the
Publication to the nstitute at the nstitute's
request.
8 CONFIDENTIAL INFORMATION
The Publication contains confidential information of the
nstitute and all copyright, trademarks and all other
intellectual property rights in and to the Publication are
and shall remain the sole and exclusive property of the
nstitute. Nothing in this Licence shall confer any rights
in any trade name, business name or trade mark of the
nstitute on you. The provisions of this Clause 8 shall
continue to operate after the termination or expiry of this
Licence.
9 MISCELLANEOUS
A waiver by the nstitute of any default shall not constitute
a waiver of any subsequent default. No waiver by the
nstitute of any of these terms and conditions shall be
effective unless it is expressly stated to be a waiver and is
communicated to you in writing. f any of the terms of this
Licence are determined by any competent authority to be
invalid, unlawful or unenforceable to any extent, such
term, condition or provision will to that extent be severed
from the remaining terms, conditions and provisions
which will continue to be valid to the fullest extent
permitted by law. This Licence is governed by rish law.
Any issues or dispute arising from, or related to, any term
of this Licence shall be subject to the exclusive
jurisdiction of the Courts of reland to deal with all such
issues. This Licence supersedes all prior agreements,
arrangements and understandings between the parties
and constitutes the entire agreement between the parties
relating to the subject matter hereof. This Licence is
binding on you and us and on our respective successors
and assigns. You may not transfer, assign, charge or
otherwise dispose of this Licence, or any of your rights or
obligations arising under it, without our prior written
consent. The nstitute may transfer, assign, charge, sub-
contract or otherwise dispose of this Licence, or any of his
rights or obligations arising under it, at any time during the
term of the Licence. Chartered Accountants reland
2010.

Chartered Accountants reland is the operational name of
the nstitute of Chartered Accountants in reland.
S
T
U
D
E
N
T

S
A
M
P
L
E
N
O
T

F
O
R

A
U
D
I
T

W
O
R
K