Audit Planning Meeting Minutes — ICAI Audit Working Paper
(Following draft may be used)
Case study 1
This note summarizes the major points discussed in the meeting held at 11.00 AM at………….
Present in the meeting.
Ms. A (Engagement Partner)
Mr. B (Engagement Quality Control Reviewer)
Mr T (Manager)
Ms C (Team member -1)
Ms D (Team member – 2)
A initiated the discussion by introducing team members to the clients’ operations and the objective and scope of this assignment. She also explained briefly the probable misstatements on the basis of misstatements identified during the previous year relating to revenue, statutory compliances, related party transactions etc.
B mentioned to the team, the importance of professional skepticism and the need to maintain a questioning mind, setting aside any of our prior beliefs that management is honest and has integrity, at all times during the audit, particularly whenever circumstances indicating possible misstatements due to fraud or error are encountered and to be rigorous in following up on such indications.
T briefed everyone on the responsibilities of engagement team members which include maintaining an objective state of mind, and appropriate level of professional skepticism, performing work with the ethical principle of due care, and promptly communicating to the engagement partner any identified fraud risk indicators or possible illegal acts.
B explained that based on the meeting held with client, we shall apply our audit strategy decisions taking care of materiality and testing plan. He further explained to consider revenue as benchmark for materiality calculation.
C and D collectively discussed the planned audit procedures for key accounts. T explained that team needs to understand entity's accounting policies, including accounting procedures, address the application of the applicable financial reporting framework to the entity's facts and circumstances. Special emphasis needs to be given to audit documentation and procedures.
A discussed the budgeted man hours for the assignment and audit team mobilization with key responsibilities.
The meeting was concluded with the above discussion.
Note: This memo attempts to capture the essence of the discussion in a summarized manner. Various other topics were discussed, however, only relevant has been recorded in the minutes.
Case Study 2
This note summarizes the major points discussed in the meeting held at 10.00 AM at………….
Present in the meeting:
Ms. A (Engagement Partner)
Mr. B (Engagement Quality Control Reviewer)
Mr T (Manager)
Ms C (Team member -1)
Ms D (Team member – 2)
Ms E (Team member – 3)
Mr F (Technical expert)
Discussion
A. Preliminary discussion
Ms. A initiated the discussion and briefed the team regarding the second year of statutory audit of the Company.
Being the second year of audit, the team has sufficient understanding regarding the organizational structure of the Company and the conduct of operations.
Ms. A emphasized the importance of independence and confidentiality to the new team member and the existing team members as well.
B. Discussion about the entity
Mr. T informed that the Company filed its draft red herring prospectus with SEBI during September 2xx2 and the approval is awaited for the same.
He informed that based on the preliminary discussion with the Company’s management, there has been no major change in the operating environment of the Company.
He discussed about the various geographical locations apart from India in which the company’s business operations are active, like Europe, Asia etc.
He informed regarding the acquisition of a substantial wholly owned subsidiary by the Company during the year.
He advised the team about appointment of the firm by board of directors for 5 years.
Then he briefed the team about the company’s book keeping software, scope of audit engagement, financial reporting framework and auditing standards to be followed.
He also informed the team about the significant areas which will require more attention during the audit, by analysing the previous year’s financial statements.
Mr. T also told the team that work allocation will be made as the audit progresses and we receive some data from the client.
C. Agenda for the next meeting
Ms. A suggested for having another round of session for discussion of key aspects related to assignment.
For this purpose, she asked the manager to brief the team on previous year’s significant matters.
D. Closing note of the meeting
Ms. A informed the team that they will soon have a kick-off meeting with client for further discussions once some initial data from the client is received.
She also told the team to be ready to work even on weekends.
She informed the team that the assignment is quite confidential and each and every member should take care of independence and should not discuss any matter related to the assignment with any other person outside the team.
Any observations and issues will be first discussed internally before communicating the same to the client.
Ms. A advised the team that documents will be most probably arranged in a hard file rather than arranging them on the computers.
Ms. A ended the meeting by motivating the team that they can learn a lot from this assignment which will help them in their professional growth.
| Chapter | 2.3 and 2.4 | | Name | Initial |
|---|
| Topic | Team Mobilisation and Budgeting Time/ Man days | Prepared | C | |
| The client | XYZ Company Private Limited | Reviewed | T | |
| Task | Statutory Audit | Approved | A | |
| Period | for the year ended March 31, 2xx3 | | | |
(Following draft may be used to capture responsibilities)
Case study 1:
Following team was identified and mobilised for the assignment.
| Sr. No. | Name | Designation | Responsibilities |
|---|
| 1 | Ms A | Engagement Partner | Review of audit work papers and deliverables.
Sign off on the deliverables.
Liaison with the management
Discussions with experts and finalising opinion |
| 2 | Mr B | Engagement Quality Control Reviewer | Review the planning.
Review key work papers and opinion basis.
Sign off as Engagement Quality Control Reviewer |
| 3 | Mr T | Manager | Conducting audit
Supervision of team
Review of deliverables
Communication with client
Review of audit work papers |
| 4 | Ms C | Audit Team | Execution of audit
Preparation of audit work papers
Physical verification of Inventory
Maintaining audit file |
| 5 | Ms D | Audit Team | Execution of audit
Preparation of audit work papers
Maintaining audit file |
(Following draft may be used to plot man hours / man days)
Following Time was budgeted for the assignment.
| Name | Designation | Planning | Fieldwork | Review | Client Meeting | Finalising Draft | Sign off | Total |
|---|
| Ms A | Partner | | | | | | | |
| Mr T | Engagement Quality Control Reviewer | | | | | | | |
| Mr B | Manager | | | | | | | |
| Ms C | Audit Team | | | | | | | |
| Ms D | Audit Team | | | | | | | |
Case Study 2
(Following draft may be used as an example – while the budgeted man hours will be dependent on various aspects)
Background
The purpose of this working paper is to document the budgeted man hours of the team involved in the audit for FY 2xx3 including interim audit as well as final audit.
Man hours are planned keeping in mind the size and complexities of the business of the company, its branches, locations and requirements.
The planned man hours as listed in below table also include man hours for interaction with those charged with governance, reviews, discussions and preparing and reviewing audit work paper file.
The Detail
| S. No | Team Members | Designation | Hours |
|---|
| 1 | A | Engagement Partner | |
| 2 | B | Engagement Quality Control Reviewer | |
| 3 | C | Engagement Manager | |
| 4 | D | Team Member | |
| 5 | E | Team Member | |
| 6 | F | Team Member | |
| 7 | G | Team Member | |
| 8 | H | Team Member | |
| 9 | I | Team Member | |
| Total | | |
