Sets scope, timing and direction and guides the audit plan.

Describes planned risk assessment and further procedures.

A practical schedule of procedures tailored to the engagement.

Identify and assess risks of material misstatement.

A risk affecting the statements broadly and potentially many assertions.

A risk associated with a specific class, balance or disclosure.

A lower amount used to reduce aggregation risk to an appropriately low level.

An identified risk meeting the applicable standard’s criteria, including certain risks near the upper end of inherent risk.

What procedure is performed and its purpose.

How much work is performed, such as the number of items tested.

Revenue and systems change.

Identify risks to completeness, occurrence and cut-off.

Walk through orders, dispatches and system interfaces.

Last year’s programme may omit the new channel.

Add tests targeted to channel-specific risks.

Qualitative materiality.

Consider how an error could affect users’ decisions.

Inspect covenant terms and recalculate compliance.

A general numerical threshold alone can miss the impact.

Consider whether a lower materiality level is needed for particular items.

Timing of audit procedures.

Bridge count results to the reporting date.

Test intervening purchases, sales and adjustments.

The earlier count does not establish the closing balance alone.

Reconcile the roll-forward and investigate unusual movements.