Читать книгу Wiley Practitioner's Guide to GAAS 2020 - Joanne M. Flood - Страница 231

When planning the audit, the auditor should have a knowledge of the client’s operations. For a new client, the primary sources of information are discussions with the predecessor auditor and inquiries of client management.

For a new client, the auditor should learn about the client and plan the audit by doing the following:

1 Communicate with predecessor auditor.

2 Visit client’s administrative office and major facilities.

3 Review year-end financial statements of prior year and interim financial statements of current and prior year.

4 Review auditor’s report on prior year’s financial statements:Was there a scope limitation?Were certain matters emphasized?Did the auditor disclaim an opinion or issue an adverse opinion?Were there other modifications of the auditor’s standard report?

5 Review prior year’s income tax returns.

6 Obtain the results of the most recent income tax examination.

7 Review reports issued to agencies, such as the following:Securities and Exchange Commission (SEC)Federal Housing Administration, Small Business Administration, and Department of LaborCredit agencies and banks