Audit Evidence Actual audit approaches 2/2 2 November 2017 www.pwc.com/cz Klára Kozáková Adam Klusoň PricewaterhouseCoopers Audit, s.r.o. Assertions Accuracy (A) - amounts and other data relating to recorded transactions and events have been recorded accurately. Completeness (C) – all assets, liabilities and equity interests that should have been recorded have been recorded. Cut-off (CO) – transactions and events have been recorded in the correct accounting period. Existence/Occurrence (E/O) – Existence: assets, liabilities and equity interests exists. Occurrence: disclosed events, transactions and other matters have occurred and pertain to the entity. Presentation and Disclosure (PD) – financial information appropriately presented and described and disclosures are clearly expressed. Rights and Obligations (R/O) – the entity holds or controls the rights to assets and liabilities are the obligations of the entity. Valuation (V) – assets, liabilities and equity interests are included in the financial statements at appropriate amounts and any resulting valuation adjustments are appropriately recorded. November 2017Introduction to Audit 2 PricewaterhouseCoopers Audit, s.r.o. Fixed Assets Fixed Assets • Movement table • Agreement to fixed assets register • Testing of additions and disposals • Impairment assessement • Physical observation November 2017Introduction to Audit 3 PricewaterhouseCoopers Audit, s.r.o. Inventory November 2017Introduction to Audit 4 Testing of costing (RM, WIP, FG) Agree detail to general ledger Impairment recalculation Physical observation Impairment recalculation PricewaterhouseCoopers Audit, s.r.o. Provisions and accruals Provisions and accruals • Movement table • Recalculation of provisions • Detailed testing of accruals (scanning) November 2017Introduction to Audit 5 PricewaterhouseCoopers Audit, s.r.o. November 2017Introduction to Audit 6 Agree detail to general ledger Fluctuation analysis Confirmations Payables PricewaterhouseCoopers Audit, s.r.o. November 2017Introduction to Audit 7 REVENUES Detailed testing Substantive analytical procedure PricewaterhouseCoopers Audit, s.r.o. November 2017Introduction to Audit 8 FX, interest costs Recalculation PricewaterhouseCoopers Audit, s.r.o. Taxes • Recalculation of CIT (Corporate income tax), DT (Deferred tax) • Paid tax agreed to bank statement • Paid tax advances agreed to bank statements and CIT returns November 2017Introduction to Audit 9 PricewaterhouseCoopers Audit, s.r.o. Questions November 2017Introduction to Audit 10 Thank you for your attention. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Audit, s.r.o., its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. © 2017 PricewaterhouseCoopers Audit, s.r.o. All rights reserved. “PwC” is the brand under which member firms of PricewaterhouseCoopers International Limited (PwCIL) operate and provide services. Together, these firms form the PwC network. Each firm in the network is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way.