Audit procedures

The diagram above does provide some idea about audit procedures that are done during the interim and final audit, not at the planning and review stage.

The basic idea is to understand that audit procedures are done to gather audit evidence.

Evidence that needs to be gathered can be about the reliability of the internal control system is achieved using test of control (as the audit procedure) - this means that control risk assessment is low

You will need to identify the control then write up the procedures to confirm if the control is working as designed. Good questions to look at includes Seelay and B-Star, which provides an idea about control testing and whether control testing is appropriate sufficient evidence.

Evidence that need to be gathered about the reliability of the accounting system (whether the audit assertions are being met) is achieved using substantive procedures - which includes test of detail and substantive analytical procedures.

This can be focused on the balance - Seelay part c and d + Westra part b, transaction - ASG part b + Westra part a or sometimes on a disclosure - not done yet.

The evidence can be gathered by using documentation - like Westra and ASG or it can be done using analytical procedure - like B-Star and Blake.

So far your examiner has not really asked questions that test audit procedures like the previous examiner, she focuses more on balance testing and control testing. There was a limited amount of emphasis on the transaction part in June 2010 and Dec 2010. This could indicate that either she does not like those areas or that it might hit you in June 2011. If nothing comes out this time, it would be a sign that she does not favour transaction testing (probably too easy).

She also has not asked questions for audit procedures that require a reason for the test (awarding 2 marks per point, rather than more reduce 1 mark per procedure approach)

On that note the other thing that has also been seen in the last two sitting is an over-emphasis in internal controls (some questions are more that unusual - it is good but it could be better question as seen in Bluesberry Dec 2010). I would expect that it would be possible for more unusual questions set within the context of internal controls.

Good luck in the exam