Page 306 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
(CNO - PSU.100) COMPLIANCE AUDIT

(CNO - PSU.105) COMPLIANCE AUDIT PROCESS
General principles and Annual Compliance Audit Plan
General Principles and Ethics: Consider principles with ethical significance.
Compliance Audit Process: Consider principles directly relating to compliance audit process.
Determination of Entities: Determine Auditable entities, audit units and implementing units.
Annual Compliance Audit Plan: Develop annual plan for compliance audits.
Planning Compliance Audits
Planning Compliance Audits: Determine compliance audit objective and scope.
Audit Strategy and Plan: Develop audit strategy and plan.
Subject Matter Identification: Identify subject matter and criteria.
Entity Understanding: Understand the entity and its environment.
Internal Control Insight: Understand internal control.
Materiality Establishment: Establish materiality for planning purpose.
Risk Assessment: Assess risk.
Audit Procedures Planning: Plan audit procedures.
Performing the Audit and Gathering Evidence
Evidence Gathering: Gather evidence through various means.
Planning and Risk Update: Continually update planning and risk assessment.
Non-compliance Indicators: Consider non-compliance that may indicate suspected unlawful acts.
Evaluating Evidence and Forming Conclusions
Evidence Evaluation: Evaluate whether sufficient and appropriate evidence is obtained.
Materiality Consideration: Consider materiality for reporting purposes.
Conclusion Formation: Form conclusions.
Documentation and Quality Control: Ongoing documentation, communication and quality control.
Reporting
Report Preparation: Prepare the report.

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