Course Overview

The IRBA inspection findings highlight that auditors frequently receive findings due to common issues in high-risk areas. This workshop, Auditing Zone 6 – The Danger Zone, focuses on the five highest-risk areas that often lead to audit file deficiencies. The course will provide practical solutions and structured approaches to help auditors mitigate risks and avoid these pitfalls, ensuring compliance with standards and avoiding IRBA findings.

This hands-on workshop will introduce you to the 10-step, 10-sheet approach, a structured method that ensures all key audit areas are addressed thoroughly and efficiently. A Q&A session at the end of the workshop will give participants the opportunity to ask questions and clarify any uncertainties.

Course Content

Lack of Appropriate Audit Evidence

Problem: Auditors frequently test in the wrong direction, leading to irrelevant evidence that does not corroborate the assertion being tested.

Solution: Learn how to align testing direction with audit assertions to ensure relevant and appropriate audit evidence is obtained.

Revenue

Problem: Revenue is a complex audit area, often involving incorrect testing direction or risk assessment due to misapplication of the financial reporting framework.

Solution: Understand how to properly assess and test revenue recognition, aligning procedures with the relevant framework and client practices to ensure compliance.

Journals

Problem: Journal entries often do not receive enough attention, with limited testing that fails to address significant risks or underlying motivations.

Solution: Develop a comprehensive approach to journal testing, ensuring that potential risks, motivations, and anomalies are identified and adequately addressed.

Related Parties and Transactions Outside the Normal Course of Business

Problem: Auditors tend to overemphasize disclosures, overlooking the need to test for fraud risks and identify non-routine transactions.

Solution: Learn how to identify and test related party transactions thoroughly, ensuring fraud risks and transactions outside the normal course of business are considered.

Estimates

Problem: Estimates are often not tested adequately, with auditors missing key questions that should guide their testing.

Solution: Follow a structured approach to testing estimates, effectively challenging management assumptions and ensuring compliance with auditing standards

Workshop Details

• Introduction to the 10-step, 10-sheet approach for auditing these high-risk areas
• Practical tools and templates to apply the approach in real-world scenarios
• Case studies to practice auditing key areas and identify common pitfalls
• Q&A session to address specific challenges and clarify any questions

Who Should Attend

• Auditors
• Audit Managers
• Audit Partners
• Engagement Quality Control Reviewers
• Senior Audit Trainees