Learning Objectives

Understand the auditor's requirements for client acceptance and continuance.

Know what is required to establish the terms of an engagement.

Know the types of information that are included in an engagement letter.

Understand how the work of the internal auditors can assist in the performance of the audit.

Know the responsibilities of the audit committee and how it relates to the external auditors.

Understand the steps that are involved in preplanning.

Identify the steps that are performed in planning an audit engagement.

Know the types of audit tests.

Learn the purposes and types of analytical procedures.

Understand the audit testing hierarchy.

Identify financial ratios that are useful as analytical procedures.