Implementing Agile Auditing: The Audit Planning Process

2021 ◽  
pp. 137-147
Keyword(s):  
Planning Process ◽  
Audit Planning

The Influence of Potentially Fraudulent Reports on Audit Risk Assessment and Planning

2001 ◽  
Vol 76 (1) ◽  
pp. 59-80 ◽  
Author(s):  
D. Paul Newman ◽  
Evelyn Patterson ◽  
Reed Smith
Keyword(s):  
Financial Reporting ◽  
Planning Process ◽  
Dynamic Interaction ◽  
Fraudulent Financial Reporting ◽  
Expected Payoff ◽  
Audit Risk ◽  
Audit Planning ◽  
Inherent Risk ◽  
Risk Detection ◽  
Reported Earnings

We consider how auditors assess the risk of fraudulent financial reporting and plan their audit where a possibly fraudulent auditee anticipates the assessment and planning process. The auditor uses the auditee's (possibly fraudulent) earnings report to revise his beliefs about the likelihood of fraud when formulating an audit plan. We find that as underlying earnings increase, a fraudulent auditee increases reported earnings. In turn, as the auditee's reported earnings increase, the auditor increases audit effort. We also find that the auditee (who knows the auditor will use the report for audit planning) selects reports that increase his own expected payoff, relative to reports he would select if the auditor did not observe the report before finalizing the audit plan. By contrast, the auditor is no better off using the auditee's report for audit planning. Inherent risk, detection risk, and overall audit risk can increase when the auditor uses the auditee's report. Thus, because of the dynamic interaction between the auditor and auditee, procedures that aid in assessing audit risk may not reduce that risk or result in more efficient audits.

Activity

2020 ◽  
pp. 31-59
Keyword(s):  
Planning Process ◽  
Professional Experience ◽  
Audit Planning ◽  
Standards And Guidelines ◽  
It Audit ◽  
Audit Standards

When addressing IT audit planner responsibilities, the in-charge IT auditor must inscribe and communicate an engagement's objectives, ambit, and examinable units based on an obtained audit area understanding. Through synthesizing relevant audit standards and guidelines as well as professional experience, Chapter 2 presents crucial outputs for completing the IT audit planning process. Chapter 2 discusses issues related to planned compliance and substantive testing and then provides primary documentation requirements of an operational IT audit plan. Chapter 2 also presents IT audit planner tasks when conferencing with the engagement auditee(s) and associated communication distribution.

scholarly journals Pengaruh Pengalaman Auditor, Time Budget Pressure dan Ukuran Kantor Akuntan Publik Terhadap Audit Report LAG Pada Auditor Kantor Akuntan Publik Di Kota Surabaya

2020 ◽  
Vol 11 (2) ◽  
pp. 80
Author(s):  
Dewi Sutjahyani
Keyword(s):  
Audit Quality ◽  
Planning Process ◽  
Time Budget ◽  
Audit Report ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Planning ◽  
Public Accounting Firms ◽  
Inspection Tasks ◽  
Time Budget Pressure

The job of the auditor is to provide useful information, therefore when the audited report is delayed it will reduce the use value of the financial statements presented. Therefore, it is important to identify and have a deeper look at several factors related to the occurrence of audit report lag. Thus, it is necessary to study whether these factors significantly influence the audit report lag. This is important because the audit report lag phenomenon can reduce client interest and affect the reputation of auditors and public accounting firms where auditors work. Hypothesis 1 in this study is rejected, this means that the experience of auditors does not significantly affect the Audit Report Tag. work and the number of inspection tasks. The experience variable does not have a significant effect because audit quality is not determined by the length of work and the number of audit tasks. Hypothesis 2, namely that time budget pressure has an effect on audit report lag, is rejected. Time budget pressure is vital in the process of completing an audit report. In this case the time budget pressure does not have a significant effect because the budget pressure is determined when planning to determine the audit task but the implementation of the audit can be different influenced by the existing situation. For example during a pandemic, uncontrollable situations lead to leeway in the completion of audited reports. So that the existing time budget pressure must be adjusted. The hypothesis in this study is accepted, this is because the size of KAP basically determines the level of efficiency and effectiveness of each auditor's task. In medium and large KAPs, there is usually a structured system and maturity from the audit planning process to the audit. This is because large public accounting firms usually try to maintain quality and reputation to keep their clients interested

scholarly journals Planning for Substantive Testing at the Assertion Level: A Training Activity and Mini Case

2020 ◽  
Author(s):  
Janice E. Rummell ◽  
Andrea B. Weickgenannt
Keyword(s):  
Planning Process ◽  
Critical Role ◽  
Financial Statement ◽  
Student Survey ◽  
Training Activity ◽  
Audit Planning ◽  
Financial Statement Audit ◽  
Students First ◽  
Survey Responses

This two-part educational resource was developed to enhance students’ understanding of a key aspect of the audit guidance concerning financial statement audit planning for substantive testing at the assertion level. Assuming the role of audit associates at a CPA firm, students first engage in a training activity in which they deconstruct substantive audit tasks into significant financial statement accounts, management assertions, and types of audit procedures related to each task. Then students consider inherent risk factors for a client engagement in a mini case and apply relevant accounts, management assertions, and detailed substantive audit procedures. These resources are easy to implement and require little advanced preparation, yet they provide a rich instructional resource for either new or experienced auditing faculty. Assessment results and student survey responses reveal the effectiveness of these resources in promoting students’ comprehension of the critical role of management assertions in the audit planning process.

scholarly journals ANALISIS KEMAMPUAN BERPIKIR KRITIS AUDITOR INTERNAL PADA TAHAP PERENCANAAN AUDIT SISTEM MANAJEMEN MUTU DI UNIVERSITAS SURABAYA

2016 ◽  
Vol 12 (2) ◽  
pp. 1
Author(s):  
Bella Callista ◽  
Fidelis Arastyo Andono
Keyword(s):  
Critical Thinking ◽  
Quality Management ◽  
Management System ◽  
Planning Process ◽  
Quality Management System ◽  
Internal Audit ◽  
Thinking Skills ◽  
Critical Thinking Skills ◽  
Audit Planning

<span>This study aims to look at how critical thinking skills when planning the audit of<br /><span>quality management system at the University of Surabaya. The background of<br />this research is because there has been no previous study that discusses the<br />critical thinking skills and their relation to the audit planning process. In its<br />practice, this study used a qualitative approach and can be categorized as basic<br />research by conducting interviews and document analysis as the primary method<br />for obtaining the data. It is intended that the results of this study can actually see how the role of critical thinking skills of internal auditors during audit planning. The interviews were conducted at 3 Ubaya internal audit staff. In the other, the analysis is done using several documents were obtained as a result of information that reinforces interviews. From these results, it was found that there is a role of the auditor’s ability to think critically when planning the audit of quality management system in Ubaya. In addition, critical thinking skills possessed by the auditor may develop through experience and the training.<br />Keywords: Internal Internal audit, critical thinking, quality management system.<br /></span></span>

Activity

2020 ◽  
pp. 1-30
Keyword(s):  
Planning Process ◽  
Business Practices ◽  
Audit Risk ◽  
System Perspective ◽  
Audit Planning ◽  
Assessment Tasks ◽  
Standards And Guidelines ◽  
Audit Project ◽  
It Audit

To fulfill audit planner responsibilities, the information technology (IT) auditor must determine examinable units using a selection method for engagements. Through synthesis of relevant audit standards and guidelines as well as professional experience, Chapter 1 presents crucial inputs to the IT audit planning process to organize a comprehensive assessment of an IT audit area. Chapter 1 discusses how to obtain an understanding of assurance objectives, enterprise objectives, and business practices for an IT audit project. Moreover, Chapter 1 discusses IT audit materiality, IT audit risk assessment tasks, and presents foundational control appraisal tasks from a system perspective.

Persepsi Auditee Terhadap Pelaksanaan Fungsi Satuan Pengawas Internal Universitas Sebelas Maret Surakarta

2018 ◽  
Vol 26 (1) ◽  
pp. 1-12
Author(s):  
Mahanani Abqory ◽  
Abdul Halim
Keyword(s):  
Asset Management ◽  
Planning Process ◽  
Internal Audit ◽  
Added Value ◽  
Internal Auditor ◽  
Audit Planning ◽  
Internal Audit Function ◽  
Unit Function ◽  
To Come ◽  
Audit Activity

The research aims to deeply investigate auditee’s perception on the implementation of internal audit function to the Internal Supervisory Unit as the Internal Auditor at Sebelas Maret University viewed from its independence, competence, performance of audit, and added-value. The respondents of the research were auditees which were directly related to finance and asset management in UNS and were directly related to the Internal Supervisory Unit in internal audit activity. The research is intended to give suggestions to the management about the evaluation of the internal audit activity through auditee’s perception which can help management to come to the decision to increase the quality of the Internal Supervisory Unit as the Internal Auditor of Sebelas Maret University.The result of the research shows that the auditee has good perception to the Internal Supervisory Unit function as the Internal Auditor of Sebelas Maret University, viewed from its independence, competence, performance of audit, and added-value. Although it has some shortages in terms of audit planning process, coverage of audit, and intensity of accompaniment to the auditee. Keywords: Perception, Auditee, Internal Audit Function, Internal Audit Supervisory, UNS

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