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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Assess options
   • Identify statutory requirements from assessment of terms of reference, and client objectives and obligations
   • Review and analyse client activities and procedures to establish familiarity with systems and guide selection of appropriate audit methodologies
   • Develop financial audit methodologies to identify significant features of audit and establish criteria for conducting audit in accordance with professional auditing standards
2. Identify information sources
   • Identify audit financial data sources from evaluation of organisation’s information systems
   • Create audit lines of enquiry to support audit objectives and reduce audit risk to acceptable level
3. Determine audit strategies
   • Establish client financial business characteristics from analysis of general economy, industry and client’s provided information
   • Assess client’s inherent financial risk through value chain risk analysis
   • Identify internal control procedures for financial transactions through discussion with client and established professional standards
   • Ensure audit methodologies use established sampling and selection techniques in manner consistent with internal control procedures and substantive testing
4. Schedule resources and timelines and monitor progress
   • Establish timeframes and allocate personnel to functions and tasks based on audit lines of enquiry
   • Review resource use regularly, and develop and monitor intermittent reports with resource allocation and timeframes adjusted through discussion and agreement with client and in accordance with professional accounting standards
5. Review data and verify statements
   • Identify significant strengths and weaknesses in controls and rank in accordance to audit objectives
   • Obtain and evaluate evidence on financial systems and controls under review using established testing procedures and in accordance with criteria identified in audit methodology
   • Test management assertions to achieve audit objectives
   • Gather sufficient appropriate audit evidence as basis for expert opinion
   • Verify financial statements as materially misstated or correct
6. Determine reporting formats
   • Identify and document financial operational functions, services and systems in accordance with standard formats
   • Ensure format is consistent with documentation requirements of auditor and professional auditing standards
   • Formulate and provide financial audit opinions, including recommendations, to client in established and acceptable format

Performance Evidence

Evidence of the ability to:

assess client risk and determine financial audit strategy and methodology

schedule resources and timelines, and monitor progress

review data, verify financial statements and determine reporting formats that comply with:

organisational financial internal control policy and procedures

relevant legislative requirements and professional standards.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

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Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

identify and explain the key features of current financial legislation and statutory requirements relating to internal control, taxable transactions and reporting requirements

identify and explain the key features of current, relevant professional accounting standards

outline the duties and responsibilities of auditors

discuss professional standards and ethical considerations for management and handling of files and records

identify and explain the key principles of:

auditing

internal control

compare and contrast testing procedures and methods of enquiry.

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