Tianlong Audit Methodology
The Ultimate Guide to Auditing
At the beginning of the audit we plan and resource the audit for effective delivery by performing procedures to:
- Understand the service requirements and agree the terms of our audit
- Comply with our policies for client and engagement acceptance and continuance
- Evaluate compliance with relevant ethical requirements, including independence
- Identify matters arising from these procedures that have implications for our audit
For recurring audits, we begin our preparation for the next audit shortly after (or in connection with) the completion of the previous audit.
Our understanding of the entity obtained during the client and engagement acceptance or continuance process, including our expectations about service requirements of those charged with governance and management, helps us establish our audit team and determine team roles and responsibilities. We:
- Establish the responsibilities of the partner in charge of the audit
- Establish the audit team to achieve the appropriate balance of skills, experience and competence necessary to perform the audit
- Establish the roles and responsibilities of team members for preparing and reviewing audit documentation
- Determine whether any additional expertise is needed beyond that possessed by the audit team’s current members
- Determine compliance with ethical requirements, including independence, prior to performing other significant activities for the current audit period
- Understand what to do if differences of opinion arise within the audit team, with those consulted and, when applicable, between the partner in charge of the audit and the engagement quality reviewer
- Understand the competence of component teams in a group audit.
It is important that members of the audit team understand the objectives of the work they perform and we determine that appropriate levels of supervision are in place. We conduct timely reviews to determine that the work performed supports the conclusions reached and is documented appropriately.
We evaluate our compliance with relevant ethical requirements, including independence. We determine compliance for both the Firm and the members of the audit team.
The ethical requirements relevant to our audit are Parts A and B of the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code of Ethics). We also comply with local ethical requirements or codes in the jurisdiction of our audit.
Our Independence Policy is designed to comply with the IESBA Code of Ethics for independence, objectivity and integrity.
Topics under chapter 1: Initial Planning
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You will get a month’s worth of bookkeeping. Whether or not you continue with us, your reports for the month are yours to keep.