Acca aa s21 Notes

financial statement
level (i.e. relating to the financial statements as a whole, for example, 
the risk of management override of internal control).
(2)
The 
assertion
level (i.e. relating to classes of transactions, account balances and disclosures).
RoMM is explained in more detail in Chapter 9.
4. Audit timing
Now we are going to look in more detail at the conduct of an audit. Here is a typical timetable.
Planning visit
Interim
audit.
Document
system
procedural
tests
Final
audit.
More
direct
checking
of
balances
31 December
1 January
Year-end 
procedures
The first thing that has to happen is a planning visit, or if not a visit at least a telephone call. There 
would certainly be a visit before the first audit of a new client commenced.
Contact is necessary because, at the very least, you have to agree with the client when the audit staff 
will visit. Also at this planning stage, enquiry should be made about what changes may have taken 
place at the client’s since the previous audit. For example, they may have a new accounting system, or 
there maybe changes in staff, or they might have expanded so instead of having one shop they 
maybe have two, and that will have implications for inventory counts.
The next stage is what’s known as the interim audit. The interim audit would typically happen perhaps 
in July or August of the year to 31 December. The auditor will carry out tests of controls, to ensure that 
the system of internal control as they understand it and as specified by the client is actually working in 
practice.
There will usually be some audit procedures that have to be carried out at the reporting date. For 
example, where the value of inventory included in the financial statements will be based on physical 
quantities, the auditor will plan to attend the physical count. (This is covered later in Chapter 20.)