Walter Wolf was pleased. He had been with the firm of Riding, Hood & Co. less than a year-and-a-half since graduation from university and had received excellent performance reviews on every engagement. Now he was being given “in charge” responsibility on an audit. It was a small client, but it felt good to have the firm show such confidence in him. He planned to show that the firm had made the right decision.
Walter thought back to some of the advice his seniors had given him. Two comments in particular stood out as key steps to a successful audit:
• Careful attention to planning the audit pays dividends. Time spent on audit planning is never wasted.
• Avoid being a mechanical auditor. Focus on the assertions embodied in the financial statements and the related audit objectives when planning audit tests.
a. Develop a list of tasks Walter should perform in planning this audit engagement, before any audit testing begins.
b. CAS 315 lists management assertions embodied in financial statements. List and briefly describe the audit objectives that relate to these assertions.