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