AUE2601 - Auditing Theory And Practice STUDY GUIDE . LEARNING UNIT 1.2: ASSURANCE AND NON-ASSURANCE
ENGAGEMENTS
Introduction
Clients can engage auditors to perform various services. These services can be classified
as assurance and non-assurance engagements.
In this study unit, auditing theory...
Printed and published by the
University of South Africa
Muckleneuk, Pretoria
AUE2601/1/2018
70616175
,Contents
TOPIC 1: INTRODUCTION TO AUDITING .......................................................... 1
LEARNING UNIT 1.1: THE AUDITOR .................................................................... 3
LEARNING UNIT 1.2: ASSURANCE AND NON-ASSURANCE
ENGAGEMENTS ................................................................. 9
LEARNING UNIT 1.3: AUDITING POSTULATES ................................................. 18
LEARNING UNIT 1.4: THE ACCOUNTING PROFESSION .................................. 20
LEARNING UNIT 1.5: THE FINANCIAL STATEMENT AUDIT
ENGAGEMENT ................................................................. 24
TOPIC 2: REGULATION OF THE AUDITOR .................................................... 31
LEARNING UNIT 2.1: THE AUDITING PROFESSION ACT 26 OF 2005
(APA) ............................................................................... 34
LEARNING UNIT 2.2: THE COMPANIES ACT 71 OF 2008 (THE AUDITOR) ... 44
LEARNING UNIT 2.3: ETHICAL PRINCIPLES REGULATING THE
PROFESSION ................................................................. 48
LEARNING UNIT 2.4: QUALITY CONTROL OF AUDIT WORK ......................... 70
TOPIC 3: GENERAL PRINCIPLES OF ASSURANCE ENGAGEMENTS ......... 73
LEARNING UNIT 3.1: ASSURANCE ENGAGEMENTS ..................................... 75
LEARNING UNIT 3.2: INTERNAL CONTROL .................................................... 78
LEARNING UNIT 3.3: AUDIT EVIDENCE .......................................................... 89
LEARNING UNIT 3.4: RISK ASSESSMENT AND AUDIT PROCEDURES ...... 100
LEARNING UNIT 3.5: MATERIALITY ............................................................... 111
LEARNING UNIT 3.6: AUDIT RISK .................................................................. 116
LEARNING UNIT 3.7: AUDIT DOCUMENTATION ........................................... 122
LEARNING UNIT 3.8: ASSURANCE REPORTS .............................................. 124
TOPIC 4: THE AUDIT PROCESS .................................................................... 127
LEARNING UNIT 4.1: STAGES OF THE AUDIT PROCESS ............................ 129
LEARNING UNIT 4.2: THE PRELIMINARY ENGAGEMENT STAGE............... 131
LEARNING UNIT 4.3: THE PLANNING STAGE ............................................... 135
LEARNING UNIT 4.4: PUTTING THE AUDIT STRATEGY AND PLAN INTO
ACTION ......................................................................... 140
LEARNING UNIT 4.5: THE EVALUATING, CONCLUDING AND REPORTING
STAGE .......................................................................... 145
TOPIC 5: ENGAGEMENTS TO REVIEW HISTORICAL FINANCIAL
STATEMENTS ................................................................................. 151
LEARNING UNIT 5.1: THE AUDITING PRINCIPLES WITH REGARD TO
REVIEW ENGAGEMENTS............................................ 153
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, LEARNING UNIT 5.2: PRELIMINARY ENGAGEMENT ACTIVITIES ............... 157
LEARNING UNIT 5.3: PERFORMING THE ENGAGEMENT ............................ 159
LEARNING UNIT 5.4: CONCLUSION AND REPORTING ................................ 163
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