Levels I through 3 focus on the theory behind audits, reviews, compilations, and financial statement preparation engagements. AHI believes that by understanding the “why” behind the procedures, new staff will be prepared for all types of engagements that will arise in their career. Participants apply these concepts to realistic case scenarios, with a focus on understanding the process rather than the format. The goal is to develop thinkers, not just doers. Levels I through III courses are designed especially for any staff who will be performing audits, reviews, compilations, or financial statement preparation engagements.
Please note: Attendees must have a webcam and microphone for participating in group discussions.
To improve inexperienced staff members’ knowledge, skills and attitude, and to enable them to be more productive and profitable on audits, reviews and compilations.
ROLE OF NEW STAFF
After recognizing that “taking the total service approach” is the key to growth, participants identify ways in which new staff can contribute to the success of their clients and their firm.
UNDERSTANDING AUDIT OBJECTIVES
Through guided discussion, participants identify the major steps in the audit process and the alternatives that are available throughout the process. Audit objectives are identified and discussed. Discussion includes the nature of the circumstances under which analytical
procedures, tests of controls, tests of transactions, and test of balances are performed.
WORKING PAPER TECHNIQUES/CASH
In a session scheduled on the first day of the program, participants critique a set of working papers in an area that they are familiar with – cash. Participants first identify the most common deficiencies found in the working papers of new staff. Then, through guided discussion and exposure to proper audit schedules, participants learn the most practical means of overcoming these deficiencies. In the process, participants become aware of the characteristics and benefits of using engagement management software. Techniques developed in this session are reinforced throughout the course.
Guided discussion is used to introduce participants to the purposes served and the fundamental techniques employed in performing analytical procedures. Participants are assigned a case study in which they utilize these techniques to first identify and then follow up on all accounts that have a high risk of being materially misstated.
COMPILATION AND REVIEW SERVICES
Participants identify and discuss different levels of assurance and responsibility associated with financial statement preparation engagements, compilations, reviews, and audits. Minimum levels of knowledge required in performing compilations and reviews are identified. Discussion includes procedures performed on compilations and reviews and the circumstances under which they are performed.
Participants are given an unadjusted trial balance taken from the books of a closely-held corporation, along with selected information about certain accounts. Utilizing this information, small groups of participants identify accounts needing possible adjustments, and prepare
adjusting entries that will teach the preparation of financial statements in accordance with GAAP.
TAX RECOGNITION AND RESEARCH TECHNIQUES
The two objectives of this session are to improve each participant’s skills at
(1) identifying situations common to small and medium sized clients that have tax implications and
(2) performing noncomplex tax research to resolve questions associated with each situation. Working with the same small company case used in the Compilation and Review Services module, participants first identify numerous situations with tax implications and then perform basic tax research to either resolve each tax question or recommend more in depth research.
AUDITING/REVIEWING SELECTED ACCOUNTS
In several sessions devoted to various balance sheet accounts, emphasis is placed on
(1) identifying the audit and/or review objectives applicable to a given account and
(2) designing and implementing those procedures that will, in the most efficient and effective manner, provide sufficient evidence to meet the specified objectives. Small group case analysis is used to help participants improve the skills they need in effectively and efficiently auditing receivables, payables, and inventories.
0 to 12 months of experience*
*Note: the experience level is only a guideline; actual experience levels may vary.