Steps of an Audit Engagement

The video tutorial outlines the audit process, starting with pre-engagement activities to acquire or retain clients. It then covers the planning phase, where auditors create an audit plan. The risk assessment phase follows, focusing on evaluating internal controls and setting materiality levels. Substantive procedures involve conducting test work, and the process concludes with issuing the auditor's report, which provides an opinion on the financial statements.

What are the pre-engagement activities an auditor should undertake?

Why is it important for an auditor to have a plan during the audit?

How does the assessment of risk impact the audit test work?

What are substantive procedures in the context of an audit?

What is the significance of the auditor's report in an audit engagement?