4 GAMx practical handbook

Introduction

Determine PM, TE and SAD nominal amount

Identify significant accounts and disclosures and relevant assertions

Understand the business

Understand IT environment complexity

and determine IT professional involvement

Consider client acceptance/

continuance results

Assess internal control at the

entity level

Identify fraud risks and determine responses En

gage

men

t te

am

disc

ussi

on

Und

erst

and

serv

ice

requ

irem

ents

, det

erm

ine

audi

t sc

ope,

and

est

ablis

h th

e te

am

Understand ITGCs

Make combined risk assessments

Team

pla

nnin

g ev

ent

Identify significant classes of transactions and related

applications

Understand flows of

transactions, WCGWs and

controls

Understand and

evaluatethe FSCP

Perform walkthroughs

Evaluate ITGCs

Design and execute

testsof ITGCs

Select controls to

test

Design tests of controls

Prepare audit strategies memorandum

Design substantive

audit procedures

Design generalaudit

procedures

Design tests of journal entries and other

mandatory fraud procedures

Pos

t-in

teri

m e

vent

Execute tests of controls

Execute tests of journal entries and other mandatory fraud procedures

Update tests of ITGCs

Update tests of controls

Perform substantive audit procedures (lead sheets and

audit plans)

Rea

sses

s co

mbi

ned

risk

ass

essm

ents

Perform general audit procedures

Wra

p-up

the

eng

agem

ent

Prepare summary of audit differences

Perform final overall financial statement

review

Prepare summary review memorandum

Prepare and deliver client

communications

Completedocumentation and archive engagement

Complete review and approval summary

Planning and riskidentification

Strategy and risk assessment Execution

Conclusion and reporting

GAM roadmap

Introduction