Justify the importance of engagement letters and their contents

Explain the need for, and the importance of, audit documentation.

Describe the form and contents of working papers and supporting documentation.

Explain the procedures to ensure safe custody and retention of working papers

Identify and describe the contents of the overall audit strategy and audit plan

Explain the components of audit risk

Explain how auditors obtain an initial understanding of the entity and its environment

Explain the importance of internal control and risk management

Describe and explain the five components of internal control

Discuss the limitations of internal control components

Explain how auditors record internal control systems including the use of, narrative notes, flowcharts, internal control questionnaires and internal control evaluation questionnaires

Define and explain the concepts of materiality and performancemateriality

Discuss the effect of fraud and misstatements on the audit strategy and extent of audit work

Describe computer systems controls including general IT controls and application controls

Discuss substantive procedures for obtaining audit evidence

Describe audit procedures to obtain audit evidence, including inspection, observation, external confirmation, recalculation, reperformance, analytical procedures and enquiry

Discuss and provide examples of how analytical procedures are used as substantive procedures