Auditing small entities (108135697) - Online

Overview

Updated in September 2019, this course uses case studies to focus on audits of financial statements with respect to smaller entity issues.

This course covers financial statement audits of historical information for entities such as companies limited by guarantee, incorporated associations, aged care facilities, groups and small organisations.

These audits often face different risks due to the size of the finance team and perceived lack of controls. Consequently there is specific focus on how the audit methodology should be scaled and adapted to ensure the auditor meets their obligations as well as the requirements of the auditing standards, in this specific scenario of a smaller entity.

With a strong practical focus, this manual compliments the Small Entities Audit Manual (SEAM). This course will assist audit and assurance practitioners in the performance of the audit of small entities.

Key topics:

• Audit overview
• Audit methodology
• Phases of the audit: acceptance and continuance
• Phases of the audit: planning
• Phases of the audit: performing and reviewing
• Phases of the audit: evaluate, report and wrap-up
• Case studies focusing on smaller entity issues to consolidate the learning topics covered

This course consists of one interactive online course, including a downloadable PDF learning manual and one multiple-choice online assessment.

Objectives

• Explain the auditor’s role and the key ethical and independence-related considerations in conducting an audit of a small entity
• Describe the importance of the use of auditor judgement and the application of professional scepticism to an audit of a smaller entity
• Describe the requirements for a system of quality control to be kept by the auditor
• Outline the importance of the engagement letter, reporting to those charged with governance on significant matters arising from the audit, and the management representation letter
• Explain and apply the key requirements of the Australian Auditing Standard(s)s applicable to each phase of the audit of a small entity
• Explain the importance and requirements of audit documentation
• Understand how to report on the audit outcomes

Audience

This course is designed for public practitioners and auditors who audit small businesses and not for profit entities (e.g. sports clubs, associations, companies limited by guarantee, aged care facilities, groups and small organisations).

This course fulfils the compulsory component within the CPA Australia competency requirements for SMSF Auditors, which consists of 30 hours CPD every three years.

Refer to CPA Australia website for further information: