ACCT 3222 Chapter : Chp 3 Planning Materiality
Document Summary
Table 3-1 page 71 excellent summary of procedures for evaluating a prospective client. Required : all of this after acceptance not required , specific inquiries involving the audit, review predecessor"s work papers. *establish an understanding with the client regarding services to be performed = engagement letter (exhibit 3-1, page 73) Engagement letter is required should document the understanding through a written communication with the client : objective of engagement (express opinion on financial stmts, management responsibilities: financial stmts, internal. Controls, laws and regulations, availability of accounting records, make adjustments, provide a management representation letter (ch. 17: auditor responsibilities: conduct audit in accordance with standards (pcaob or gaas, limitations of the audit reasonable assurance , fees/timing, other matters. *supervision of the audit engagement partner has overall responsibility. Types of audit tests, pages 82-84: look over, will be covered indepth later. *materiality = something is material if it affects a decision made by an average prudent investor (a reasonable person, page 85).
