Auditing - Taking an Efficient Approach to SMEs and Key Feedback From Regulators

The course will include a discussion of public reports produced by the regulators and consider how firms can effectively ensure their own files do not contain these weaknesses. There will also be consideration of areas the regulators are likely to focus on in future.

The course will also consider how to perform an ISA-compliant and efficient audit of a smaller entity. This practical session will outline characteristics of SMEs and the way to approach such audits.

The exact content of the course will depend on regulatory reports made in 2022, but is likely to include:

Key feedback from regulators:

• Audit documentation
• Audit evidence
• Risk assessment
• Key areas of weakness (e.g. completeness of income, work in progress)
• Challenging the client
• Documenting audit decisions
• Going concern evaluation and disclosure

Taking an efficient approach to SMEs

• The characteristics of smaller businesses and their audit impact
• Non-audit services – what to avoid (and how to integrate services to provide evidence)
• Efficient planning
• The right approach to fieldwork, including sampling
• Completing the audit on time and on budget
• Auditing standards and smaller audits – time for a new approach?