Hello and welcome to my channel, where I share tips and tricks on how to ace the CPA’s Common Final Examination. In this video, I will explain how to apply and implement an audit planning memo. This is a very important topic you need to master for the CFE as it involves how auditors design their audit work. Here is a possible introduction for the audit planning memo:
► The APM serves as a communication tool between the audit team and
the client, as well as a reference document for the audit work related to
joint arrangements
► The APM is based on the understanding of the entity’s business,
industry, environment, and internal control systems related to joint
arrangements
► The APM includes the identification and assessment of the risks of
material misstatement (RMM) at the financial statement level (OFSL)
and the assertion level
► The OFSL is the risk that affects the financial statements as a whole and
potentially impacts many assertions
► The assertion level is the risk that affects specific classes of
transactions, account balances, or disclosures
So, if you are ready to learn more about this topic, make sure to hit the like button, subscribe to my channel, and turn on the notification bell so you don’t miss any of my future videos. And now, let’s get started with the video!
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Best of luck with your studies!
#CPA #CFE #Auditplanningmemo
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