Copyright 2011 Deloitte Development LLC. All rights reserved.

April 2014
Lead from the Front
FY15 Audit Imperatives Responsibilities for
Audit P/P/Ds, EQC Reviewers, Professionals and
New Hires (AICPA)
Copyright 2011 Deloitte Development LLC. All rights reserved.
FY15 Audit Imperatives for Audit P/P/Ds (AICPA)
Drive Professional Excellence
1. Perform responsibilities with a professional auditor mindset focused on exercising professional skepticism
and independently evaluating information.
Reinforce the importance of maintaining a mindset focused on fulfilling our responsibilities to users of the financial statements.
Be a role model for our auditors acting as an independent evaluator who critically evaluates audit evidence, including contradictory
evidence, without over-relying on managements representations or our prior audit knowledge.
Share situations you have encountered related to professional skepticism to help educate members of the engagement team and
discuss potential biases and barriers to skepticism.
Ensure the Using Professional J udgment framework is utilized to document important decisions and professional skepticism.
Lead by example through your compliance with our independence, ethics and learning requirements and support others.
2. Understand the entitys business processes, including relevant controls, and determine the impact of relevant
controls on our audit responses to the risks identified.
Apply expertise in the applicable auditing standards to lead the team in obtaining a deep understanding of the entitys relevant
controls, including controls that address management estimates.
Execute reviews of internal control documentation early in the audit cycle to ensure our procedures and conclusions are clear and
to allow for timely identification and evaluation of control deficiencies and related changes to planned substantive procedures.
3. Develop and execute a robust plan to optimize the performance and completion of audit procedures
throughout the audit cycle.
Work with your team to identify opportunities to move audit procedures earlier in the audit cycle, when possible, and complete
execution of procedures, including timely reviews of working papers by you and the EQC Reviewer in accordance with the dates
established in the project plan.
Drive early integration and coordination with internal specialists, component auditors and EQC Reviewers; maintain focus on earlier
involvement and gaining continuous insight into audit priorities through timely reviews of working papers.
4. Demonstrate ownership of specialists procedures and related results through enhanced integration.
Initiate and supervise integration with specialists early in the audit cycle, promoting effective two-way communication.
Lead the performance of joint activities with specialists early to identify risks, understand relevant controls and substantive
procedures, and agree on the division of responsibilities, including planned tests of IPE.
Obtain an understanding of work performed by specialists in order to provide sufficient oversight throughout the audit; ensure
specialists observations are appropriately addressed through your review of work papers and ensure that specialists understand
the audit teams resolution of the specialists findings and observations.
5. Perform thoughtful oversight of procedures performed by component auditors, leading continuous
improvement activities.
Identify areas in which component auditors will be utilized, and lead preparation of the plan to provide oversight.
Provide continuous improvement activities through your oversight of component auditors, including frequent interactions,
communicating status and results of procedures, identifying areas of focus for their procedures and delivering important updates
throughout the audit.
6. Enhance your skillset and the skillset of others through ownership of our professional development.
Ensure time for professional development is considered in the audit performance plan; reinforce the importance of fulfilling
mandatory learning requirements timely, and lead by going beyond mandatory compliance to enhance your skillset.
Lead required Engagement Team Based Learnings timely and provide on-the-job training throughout the audit cycle.
Consult in any areas that involve complex accounting or auditing judgments or where you have questions or concerns.
7.Understand the entitys business, business processes and risks of material misstatement and appropriately
tailor audit procedures.
Ensure each engagement team member obtains a deep understanding of the entitys business and flow of transactions for each
process with a focus on ensuring we obtained sufficient details to allow us to identify risks of material misstatements and relevant
controls.
Critically evaluate whether planned audit procedures are tailored to appropriately respond to both normal and significant risks
identified.
8. We all own quality individually and together.
Reinforce the importance of thoughtful application of the FY15 Audit Imperatives to all members of your team, including specialists
and component auditors; make your expectations of implementation of the Audit Imperatives clear.
Drive professional excellence by frequently emphasizing to your teams our responsibilities to users of financial statements.
Copyright 2011 Deloitte Development LLC. All rights reserved.
FY15 Audit Imperatives for EQC Reviewers (AICPA)
Drive Professional Excellence
Perform your review consistent with Guiding Principles for Successful EQC Reviews Practice Aid and
Engagement Quality Control Reviews for Audits of Nonpublic Companies Practice Aid
1. Perform responsibilities with a professional auditor mindset focused on exercising professional skepticism
and independently evaluating information.
In interactions with engagement teams, reinforce the importance of maintaining the mindset of an independent evaluator who
critically assesses audit evidence, including contradictory evidence, without over-relying on managements representations or our
prior audit knowledge.
Lead by example through your compliance with our independence, ethics and learning requirements and support others.
Review working papers in complex areas, challenging whether documentation demonstrates the application of professional
skepticism in supporting conclusions.
2. Understand the entitys business processes, including relevant controls, and determine the impact of relevant
controls on our audit responses to the risks identified.
Challenge whether the engagement team has documented a deep understanding of the entitys controls, including relevant controls
that address risks related to management estimates.
Execute reviews of internal control tests early in the audit cycle to allow for timely identification and evaluation of deficiencies;
understand any adjustments to planned substantive procedures as a result of control findings.
3. Develop and execute a robust plan to optimize the performance and completion of audit procedures
throughout the audit cycle.
Challenge the engagement team to identify, perform and complete audit procedures and documentation earlier in the audit cycle.
Focus on earlier involvement with planning and perform timely reviews of working papers provided during interim.
4. Demonstrate ownership of specialists procedures and related results through enhanced integration.
Discuss with the engagement team, early in the audit process, the use of internal specialists and provide guidance related to
identifying work to be performed and completed at interim; understand how specialists are utilized in the audit.
Challenge whether the engagement team has appropriately detailed knowledge of the specialists work, has provided effective
oversight of audit procedures performed by the specialists, and has thoughtfully considered the results of such procedures.
5. Perform thoughtful oversight of procedures performed by component auditors, leading continuous
improvement activities.
Understand the engagement teams plans to use component auditors, including plans to communicate with and supervise the
component auditors throughout the audit cycle; encourage early integration.
Participate in continuous improvement activities for component auditors and review documentation of the oversight of component
auditors.
6. Enhance your skillset and the skillset of others through ownership of our professional development.
Lead by going beyond mandatory compliance with learning requirements and encourage the team to seek additional learning
opportunities.
Provide individuals on the engagement team with on-the job training by sharing your insights and challenging them to articulate the
basis for significant audit judgments.
Challenge complex areas in accounting or auditing by encouraging consultation with others outside of the engagement team.
7.Understand the entitys business, business processes and risks of material misstatement and appropriately
tailor audit procedures.
Ensure each engagement team member obtains a deep understanding of the entitys business and flow of transactions for each
process with a focus on obtaining sufficient details to identify risks of material misstatements and relevant controls.
Review working papers timely to evaluate whether the audit procedures are tailored to appropriately respond to the risks identified.
Understand how the planned audit procedures are designed to address the identified risks, including both significant and normal
risks.
8. We all own quality individually and together.
Reinforce the importance of thoughtful application of the FY15 Audit Imperatives to the engagement team; make your expectations
of implementation of the Audit Imperatives clear.
Drive professional excellence by frequently emphasizing to teams our responsibilities to users of the financial statements.
Copyright 2011 Deloitte Development LLC. All rights reserved.
FY15 Audit Imperatives for Audit Professionals (AICPA)
Drive Professional Excellence
1. Perform responsibilities with a professional auditor mindset focused on exercising professional skepticism
and independently evaluating information.
Maintain a mindset focused on fulfilling our responsibilities to users of the financial statements; when you face a difficult decision,
ask yourself what users of the financial statements would expect you to do.
Critically evaluate audit evidence, including contradictory evidence, from the perspective of an independent evaluator. Utilize the
Using Professional J udgment framework when documenting important decisions and professional skepticism. Be aware of potential
biases and barriers to skepticism.
Comply with all independence, ethics and learning requirements.
2. Understand the entitys business processes, including relevant controls, and determine the impact of relevant
controls on our audit responses to the risks identified.
Apply proficiency in the relevant auditing standards to obtain and document a deep understanding of the entitys relevant controls,
including controls that address management estimates.
Perform internal control procedures early in the audit cycle to allow for timely manager, director and partner reviews.
Identify and evaluate control deficiencies early in the audit cycle in order to adjust planned substantive procedures where
appropriate in a timely manner.
3. Develop and execute a robust plan to optimize the performance and completion of audit procedures
throughout the audit cycle.
Identify opportunities to perform audit procedures earlier in the audit cycle, when possible, and complete execution in accordance
with the dates established in the project plan.
Submit working papers for timely reviews by managers, directors, partners and EQC Reviewers and address any notes or
comments in a timely manner; complete your working paper reviews within one week.
Ensure your project plans include coordination with specialists, component auditors, senior team members and EQC Reviewers.
4. Demonstrate ownership of specialists procedures and related results through enhanced integration.
Identify areas in which specialists will be utilized and begin integration with specialists during early phases of planning.
Perform joint activities with specialists early to identify risks, understand relevant controls and substantive procedures, and agree
on the division of responsibilities, including planned tests of IPE.
Obtain an understanding of work performed by specialists in order to provide sufficient oversight throughout the audit; ensure
specialists observations are appropriately addressed through sharing your approach in discussions with them.
5. Perform thoughtful oversight of procedures performed by component auditors, leading continuous
improvement activities.
Identify areas in which component auditors will be utilized, and prepare your plan to provide oversight of component auditors early.
Perform continuous improvement activities through your oversight of component auditors, including frequent interactions,
communicating status of procedures, identifying areas of focus for their procedures and delivering important updates throughout the
audit.
6. Enhance your skillset and the skillset of others through ownership of our professional development.
Integrate professional development into the audit cycle, through actively participating in Engagement Team Based Learning,
providing and receiving on-the-job training, and scheduling time for compliance with mandatory learning requirements.
Actively seek out additional opportunities to enhance your skillset in industries and areas of the audit to which you are assigned,
including courses offered through Deloitte Learning and consultations; develop deeper expertise of relevant subject matters.
7.Understand the entitys business, business processes and risks of material misstatement and appropriately
tailor audit procedures.
Obtain an understanding of the entitys business and flow of transactions for each process; focus on obtaining sufficient details to
allow us to identify risks of material misstatements and relevant controls.
Critically evaluate whether our controls and substantive procedures are tailored to appropriately respond to the risks identified.
For both normal and significant risks, understand how the planned audit procedures are designed and executed to address each
identified risk.
8. We all own quality individually and together.
Enhance audit quality through thorough and thoughtful application of the FY15 Audit Imperatives in your areas of responsibility.
Drive professional excellence by consistently performing high quality audits and fulfilling our responsibilities to the users of the
financial statements.
Copyright 2011 Deloitte Development LLC. All rights reserved.
FY15 Audit Imperatives for Audit New Hires (AICPA)
Drive Professional Excellence
1. Perform responsibilities with a professional auditor mindset focused on exercising professional skepticism
and independently evaluating information.
Understand our responsibilities to the users of financial statements, including our independence and ethics responsibilities.
Become familiar with the concepts of professional skepticism, critical evaluation of audit evidence, and due care by reading the
tools and guidance available and utilizing these concepts as you perform audit procedures. Be aware of potential biases and
barriers to skepticism.
Discuss with more senior members of the engagement team, situations where you feel challenged in exercising a questioning mind
or in gathering and evaluating audit evidence.
2. Understand the entitys business processes, including relevant controls, and determine the impact of relevant
controls on our audit responses to the risks identified.
Read the relevant auditing standards to obtain an understanding of our responsibilities to understand internal controls when we
perform an audit under the standards of the AICPA. Become familiar with the Internal Controls tools and guides available to assist
in your testing of the design and, as applicable, the implementation or operating effectiveness of relevant controls, including
appropriate documentation of such tests.
In your areas of responsibility, review the process flow diagram (or other process flow documentation) to obtain a deep
understanding of the business processes and flows of transactions.
3. Develop and execute a robust plan to optimize the performance and completion of audit procedures
throughout the audit cycle.
For your areas of responsibility, understand objectives of audit procedures, expectations of senior members of the team and related
deadlines at the beginning of your assignment; prioritize responsibilities accordingly.
Communicate identified issues or difficulties to your engagement team early.
Discuss timing of mandatory learning courses and other responsibilities with your engagement team and be responsible for
resolving conflicts.
4. Demonstrate ownership of specialists procedures and related results through enhanced integration.
Understand how specialists will be used in areas of the audit for which you are responsible. If specialists will be used, participate in
the meetings with specialists to understand risks identified, and how internal control and substantive procedures will be allocated,
including procedures to test IPE. Determine areas in which you can assist.
5. Perform thoughtful oversight of procedures performed by component auditors, leading continuous
improvement activities.
Obtain an understanding of how component auditors are utilized on your audit engagement, specifically for your areas of
responsibility.
If component auditors are used in your area of responsibility, work with your engagement team to assist in the oversight and review
of work performed by the component auditors, if appropriate.
6. Enhance your skillset and the skillset of others through ownership of our professional development.
Identify, enroll in, and complete mandatory learning timely; communicate requirements with your engagement team early.
Actively participate in all learning sessions, including Engagement Team Based Learnings, to develop a better understanding of
subject matter.
Identify and participate in other learning opportunities to develop expertise in areas or industries to which you are assigned.
Participate in consultations that are performed related to your area of responsibility to obtain on-the-job training.
Discuss with more senior engagement team members any areas where you have questions or concerns.
7. Understand the entitys business, business processes and risks of material misstatement and appropriately
tailor audit procedures.
Understand the flows of transactions and risks of material misstatement identified (both normal and significant risks) for your areas
of responsibility.
When performing audit procedures, understand how the audit procedures address the identified risks and ensure audit evidence
obtained fulfills the objective of the audit test.
8. We all own quality individually and together.
Understand the FY15 Audit Imperatives and discuss with senior members of the engagement team the expectation of how you
should implement the Audit Imperatives on each engagement.
Understand the importance of professional excellence with respect to our responsibilities to users of financial statements.
Take pride in the quality of your work product. Self-review workpapers before submitting them to others.