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OVERVIEW OF A GROUP
OF AUDIT
DANIELA MICHELLE GARZA GARCÍA 180142 5
A N TO N I O A L E J A N D R O RO D R Í G U E Z A N C E R 1 7 3 8 3 1 5
J O E L A L B E RTO O RT I Z RO D R Í G U E Z 1 8 0 2 5 4 0
CARLOS MONTIEL GARCÍA 1794184
S A R A H L U C I A M A RT I N E Z M O R A 1 8 3 4 6 8 2
CONTENTS OF GROUP AUDIT
INSTRUCTIONS
SECTIONS A AND SECTION B OF THE GROUP OF AUDIT
INSTRUCTIONS
• The first 2 sections contain general information and specific procedures, the general info is about
subsidiaries and audit standards required. Specific procedures include discussion on:
– Reporting package and deadline
– Separate report information
– Currency exchange considerations
– Supplemental statements
– Details about the completion memorandum
– Potential material weakness in internal control
– Management letter comments
– Material differences
– Specific details of the client audited
SECTION C OF THE GROUP AUDIT INSTRUCTIONS -HOME
OFFICE TECHNOLOGY (HOT)- THE COMPANY
• The audit timetable calls for all working papers, reports and supporting schedules to be
received by January 30, at BIG overseas. The audit-planning memorandum will be due
December 12.
SECTION E OF THE GROUP AUDIT INSTRUCTIONS-
CRITICAL AND SIGNIFICANT AUDIT CONCERNS
• This section shows which items you will need to concentrate on during the audit. The specific
areas of concern are revenue, research and development costs, third-party regulation,
acquisitions, restructure accruals, management letters, benchmarking and new accounting
standards.
• There are 4 conditions:
1. A signed purchase order is received.
2. Credit worthiness of the customer is reviewed and the sale is documented.
3. The product has been shipped.
4. The product shipped is only the currently authorized product, not test products or samples.
SECTION F (MANAGEMENT LETTERS) AND G (NEW
ACCOUNTING STANDARDS) OF THE GROUP AUDIT
INSTRUCTIONS.
• Management letters are important to BIG. The instructions convey the suggestions for the
management letter to be reviewed with Local managers. Also make sure that your comments are
supported in the working papers and typed for inclusion in the consolidated management letter.
Audit
planning
memorandum
II-Follow up Section
III-Insights Section