First step in planning the engagement in order to plan one you have to accept the engagement, whether or not the preconditions of the audit have been met. There are two keys point in making this considerations
1. Determine the acceptability of the applicable financial reporting framework being applied.
2. Obtaining management agreement that it understands and accepts certain responsibility
DIM design, implementation, maintain and all this has to be free from material misstatement
So practically you have to be a clean SPY to look at other entities financial statements. both for public and not public for the most part PCAOB and ASB for non public they both are the same and have the same standards. Also you have to be independent in order look at the certain aspects of the financial statement if you are not independent then you have to write it down that you are not independent before the opinion
I hope i am right lol i just wrote down my thoughts thinking as blank sheet of paper so if i am wrong please correct me thank you as i begin this journey for audit first exam good luck to all the troopers and soldiers out there Also i know i am all over the place eehhhh what can i say sorry
just started my AUD studies plan on sitting in MAY leggo
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