[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-458639-105":3,"detail-sidebar-cat-0-en-105":81,"doc-detail-458639-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":74,"head_meta":76,"extra_data":78,"updated_unix":80},105,"en","model-audit-practice-manual-revised-and-redrafted-2012-the-institute-of-chartered-accountants-of-pakistan","Model Audit Practice Manual - Revised and Redrafted 2012 - THE INSTITUTE OF CHARTERED ACCOUNTANTS OF PAKISTAN","","Model Audit Practice Manual (Revised and Redrafted 2012) provides structured guidance for performing an audit, organized from pre-engagement through planning, execution, and reporting. It covers prospective and existing client memoranda, terms of engagement, development of overall audit strategy and plan, understanding the client and control environment, materiality, and fraud risk assessment. It also includes procedures such as analytical risk assessments, internal audit function evaluation, group audits, sampling and selection methods, sample audit programs, lead schedules, enquiry and confirmation formats, and completion and final review checklists.",{"@graph":14,"@context":73},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/model-audit-practice-manual-revised-and-redrafted-2012-the-institute-of-chartered-accountants-of-pakistan/458639/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/model-audit-practice-manual-revised-and-redrafted-2012-the-institute-of-chartered-accountants-of-pakistan/458639.png","ImageObject",300,407,{"name":42,"@type":43},"Blitz","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-16","2026-09-30",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",6,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69],{"name":60,"@type":61,"acceptedAnswer":62},"What does the manual cover across the audit lifecycle?","Question",{"text":63,"@type":64},"It follows a structured flow from pre-engagement through planning, execution, and reporting, including key memoranda, audit planning activities, testing and documentation, and completion checklists.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"How does the manual guide fraud risk assessment?",{"text":68,"@type":64},"It includes responsibilities of the auditor, a fraud risk assessment document, engagement-team discussions, discussions with management and governance, evaluation of audit evidence, and written representations.",{"name":70,"@type":61,"acceptedAnswer":71},"What audit execution topics are included regarding testing and sampling?",{"text":72,"@type":64},"It covers methods of selecting items for testing, sampling risk and approaches, selecting and testing the sample, and provides sample audit programs and testing/sampling method examples.","https://schema.org",{"og:url":32,"og:type":75,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":77,"canonical":32},"index,follow",{"doc_id":79,"site_id":7},458639,1791411975,{"code":4,"msg":82,"data":83},"success",[84,88,92,95,100,104,109,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":93,"slug":94},70,"exam",{"id":96,"doc_module":4,"doc_module_name":25,"category_name":97,"show_sort_weight":98,"slug":99},5,"Comic",60,"comic",{"id":55,"doc_module":4,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},"Technology",50,"technology",{"id":105,"doc_module":4,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},7,"Healthcare",40,"healthcare",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},8,"Research & Report",30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":96,"slug":129},19,"General","general",{"code":4,"msg":82,"data":131},{"doc_id":79,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":33,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":139,"language":140,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":12,"update_tm":144,"read_time":145},24464137899374,"https://us-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","Model Audit Practice  \nManual  \n(Revised and Redrafted 2012)  \nTHE INSTITUTE OF CHARTERED ACCOUNTANTS  \nOF PAKISTAN  \nCONTENTS  \nPage  \nPREFACE ……………………………………………………………………….…… 06  \nPART I – PRE-ENGAGEMENT ……………………………………………..………. 08  \nChapter 1 Prospective Client Acceptance / Existing Client’s Continuation Memorandum ……………………………………………………… 09  \nI Prospective Client Acceptance Memorandum ……………… 09  \nII Existing Client Continuation/ Retention Memorandum …….. 14  \nChapter 2 Terms of Engagement ……………………………………………… 17  \nI Agreeing Terms of Engagement on Acceptance of the Audit .. 17  \nII Change in Terms of Audit Engagement …………………… 18  \nPART II – PLANNING………………………………………………………………….. 20  \nChapter 3 The Planning Process……………………………………………….… 20  \nI Developing an overall audit strategy ………………………….. 20  \nII Overall Audit Plan ……………………………………………….. 24  \nChapter 4 Know your client (understanding business and its activities)…..…. 29  \nI Client Overview ………………………………………………… 29  \nII Business Control Environment …………………………..…… 35  \nIII Computer Information Systems (CIS)……………..………… 36  \nIV Financial Reporting Environment …………………………… 37  \nV Critical Audit Areas / Significant Financial Statement Components ………………………………………………….… 38  \nVI Reasons for use of experts and other parties …………..…… 39  \nChapter 5 Control Overview ……………………………………………….…… 40  \nI Control Overview and Risk Assessment Document ………… 41  \n(a) Control environment ………………………………………..…… 41  \n(b) Entity’s risk assessment process ……………..………..……… 43  \n(c) Information system, and related business processes relevant to financial reporting, and communication ……..…… 44  \n(d) Control activities relevant to audit ……………….……..……… 46  \n(e) Considerations Specific to Smaller Entities …….……..……… 47  \n(f) Monitoring of controls …………………………..……….……… 49  \nChapter 6 Audit Materiality ……………………………………………………..…… 51  \nChapter 7 Fraud Risk Assessment ………………………………………………… 55  \nI Responsibilities of the Auditor ……………..…………………… 55  \nII Fraud Risk Assessment Document ……………..……………… 57  \nIII Discussion among the Engagement Team …..………………… 57  \nIV Discussions with Management ……………….………………… 58  \n(a) Results of enquiries of management ……..………………… 58  \n(b) Discussions with those charged with governance ………… 59  \n(i) Fraudulent financial reporting …….…..……………… 60  \n(ii) Misappropriation of assets …….……...……………… 61  \nV Evaluation of Audit Evidence ….………………..……………… 66  \nVI Written Representations ……….………………..……………… 67  \nChapter 8 General Purpose CIS Checklist ……………………………………… 68  \nChapter 9 Analytical Performed as Risk Assessment Procedures …………… 78  \nI Analytical Review – Ratio Analysis …………………………… 79  \nII Review of Financial Performance of the Client ………..……… 82  \nChapter 10 Internal Audit Function Evaluation …………………………………… 85  \nSection I—Preliminary assessment of the internal audit function ……… 86  \nSection II—Evaluate and test the work of internal audit ………………… 86  \nChapter 11 Group Audit and Using the Work of Component / Other Auditors…… 89  \nSection I – Obtaining an understanding of the Group …..……………..… 90  \nSection II – Understanding the Component Auditors …………………… 91  \nSection III – Communicating the group instructions to Component Auditors …………………………………..…..……………..… 93  \nSection IV – Other considerations …………………..…………………..… 97  \nSection V-Reporting Considerations …………………………………..… 99  \nChapter 12 Staff Planning and Time Allocation ……………………………….… 101  \nChapter 13 Points Forward From Previous Year …………………………….… 105  \nPART III – EXECUTION ……………………………………………………………… 106  \nChapter 14 Means of selecting items for testing ……………………………..… 106  \nI Introduction ……………………………………………………..… 106  \nII Sampling Risk …………………………………………………..… 107  \nIII Sampling Approaches ………………………………………..… 109  \nIV Selecting and testing the sample (Methods)………………..… 111  \nV Examples of some testing/sampling methods ……………..… 116  \nChapter 15 Sample Audit Programs ………….………………………………….… 123  \nI Balance Sheet –Assets ……………………………………….… 124  \nII Balance Sheet-Liabilities ","cbCaie8JtoGPml7K","https://ap.wps.com/l/cbCaie8JtoGPml7K","pdf",2495555,455,"English","# Preface\n# Part I – Pre-Engagement\n## Chapter 1 Prospective Client Acceptance / Existing Client’s Continuation Memorandum\n## Chapter 2 Terms of Engagement\n# Part II – Planning\n## Chapter 3 The Planning Process\n## Chapter 4 Know your client (understanding business and its activities)\n## Chapter 5 Control Overview\n## Chapter 6 Audit Materiality\n## Chapter 7 Fraud Risk Assessment\n## Chapter 8 General Purpose CIS Checklist\n## Chapter 9 Analytical Performed as Risk Assessment Procedures\n## Chapter 10 Internal Audit Function Evaluation\n## Chapter 11 Group Audit and Using the Work of Component / Other Auditors\n## Chapter 12 Staff Planning and Time Allocation\n## Chapter 13 Points Forward From Previous Year\n# Part III – Execution\n## Chapter 14 Means of selecting items for testing\n## Chapter 15 Sample Audit Programs\n## Chapter 16 Lead Schedules\n## Chapter 17 Formats of Enquiry and Confirmation\n## Chapter 18 Inventory Count Attendance Program\n## Chapter 19 Going Concern Assessment\n## Chapter 20 Related Party Transactions Checklist\n## Chapter 21 Companies Ordinance Compliance Checklist\n## Chapter 22 Income Tax Provision Checklist\n## Chapter 23 Labour Laws Compliance Checklist\n## Chapter 24 Tax Position\n## Chapter 25 Summary of corrected misstatements\n# Part IV– Reporting\n## Chapter 26 Final Review of Financial Statement\n## Chapter 27 Working of Cash Flow Statement\n## Chapter 28 Overall Conclusion Analytical Procedures\n## Chapter 29 Summary Review Memorandum for Partner\n## Chapter 30 Significant Matters Documentation\n## Chapter 31 Points for Next Year\n## Chapter 32 Evaluate Team Performance, Assess Client Satisfaction and Team Debriefing\n## Chapter 33 Subsequent Events Review Checklist\n## Chapter 34 Audit Completion Checklist","[{\"question\":\"What does the manual cover across the audit lifecycle?\",\"answer\":\"It follows a structured flow from pre-engagement through planning, execution, and reporting, including key memoranda, audit planning activities, testing and documentation, and completion checklists.\"},{\"question\":\"How does the manual guide fraud risk assessment?\",\"answer\":\"It includes responsibilities of the auditor, a fraud risk assessment document, engagement-team discussions, discussions with management and governance, evaluation of audit evidence, and written representations.\"},{\"question\":\"What audit execution topics are included regarding testing and sampling?\",\"answer\":\"It covers methods of selecting items for testing, sampling risk and approaches, selecting and testing the sample, and provides sample audit programs and testing/sampling method examples.\"}]","Model Audit Practice Manual - Revised and Redrafted 2012 - THE INSTITUTE OF CHARTERED ACCOUNTANTS OF PAKISTAN | PDF",1790753934,1147]