Efficient Auditing of Private Companies, 5th Edition

A detailed guide to planning, carrying out and completing an audit, Efficient Auditing of Private Companies is now in its 5th edition and covers issues and problems a year on from the introduction of Clarified ISAs. This new edition includes lessons learnt and recent changes including the ASB’s new definition of related parties, new example working papers dealing with accounting estimates, as well as greater detail on analytical procedures including setting expectations and an acceptable level of difference.

This new edition builds on the previously published Clarified ISA version of the same title and focuses on areas picked up in the QAD’s reports as well as SWAT UK’s extensive client experience of common problems and pitfalls, including the top 20 problems identified at file review. The title helps with tailoring the audit approach to ensure the most efficient and cost effective audit possible.

The guidance is structured into three main areas:

• Planning – a step by step guide through the ISA requirements and what they mean in practice
• Carrying out the audit – what tests need to be carried out and how these translate from the ISAs
• Completion – a review of all the information pulled together to successfully complete the audit

Changes since the last edition of this title include:

• Updated for revised ethical standards
• Expanded section on review of estimates
• Expanded section on review of accounting policies
• Further guidance on the response to risk of management override
• Greater detail on analytical procedures
• Updated approach to related parties for the revised FRS 8
• Updated chapter on audit reports for the revised ISA 700
• Guidance amended throughout to refer, where applicable, to common problems SWAT UK has found on file reviews and also areas of weakness highlighted by the QAD

The guidance references the PCAS and Kestrian audit methodologies but is also applicable for those using other audit systems as a guide on how to do an audit efficiently and cost effectively.