Edward Epstein of HAS Ltd.
10+1 Key points to make audits more profitable and compliant
1. Remember “DOCUMENTATION!”. If your Audit work is not documented, the External Reviewer will assume you have not done the work.
2. Use ES-PASE properly.
3. Refer early on in the Audit to the key risk areas.
4. Spend 20% of the budget time on your Audit Planning Memorandum.
5. Avoid, when possible, the checklist approach and use free- flow documentation.
6. Use Directional Testing to reduce your audit work.
7. Make use of your client’s schedules.
8. Use substantive analytical review.
9. Ensure your going concern review is detailed and covers the period.
12 months from the Audit Report date.
10. Put an audit highlight on each of the lead schedules.
11. Use the External hot and cold file reviews to improve the quality of your audit files.