Reflection Journal: Comparing Audit Planning and Performing

This reflection journal analyzes the relationship between Module 2 (Planning the Audit) and Module 3 (Performing the Audit) within the CPA Program's Advanced Audit and Assurance curriculum. The student explores the interconnectedness of these modules, highlighting that effective audit performance relies on comprehensive planning, including preliminary engagement activities, audit planning procedures, and risk assessment. The journal emphasizes the importance of understanding materiality and financial statement assertions as crucial elements in both planning and execution. It also acknowledges the differences in auditing standards and focus areas between the two modules while stressing the need for studying them concurrently. The student shares personal study strategies, including following instructors' guidance, utilizing audit journals, and conducting external research, to overcome challenges and gain a deeper understanding of key concepts. The journal concludes by recommending a combined study approach and the use of available resources to enhance learning in advanced auditing and assurance.

Running head: REFLECTION JOURNAL
Reflection Journal
Name of the Student
Name of the University
Author’s Note

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Reflection Journal
I had to study five modules under ‘CPA Program Advanced Audit and Assurance’ and as
the name suggests, all the modules are on audit and assurance. The main aim of this reflection
journal is to make connection between two of these modules which are Module 2 and Module 3.
The topic under Module 2 is planning the audit of historical financial information and the topic
under Module3 is performing the audit of historical financial information. Since both of these
topics are associated with audit and assurance, there are certain similarities between these two
modules along with certain dissimilarities. These two modules are related because audit can only
be performed after the whole planning process. Audit planning of historical financial information
provides the auditors with the direction to precede with the audit processes.
As I have learnt, there are three parts of the audit of historical financial information; they
are planning the audit, performing the audit and concluding the audit by appropriate audit
reporting. Now, both the planning stage and performing stage of audit are interconnected. I have
been taught three crucial aspects of audit planning in Module 2. First, performing preliminary
engagement activities which determine whether the engagement should be accepted or not;
second, performing audit planning procedures that help in developing overall audit strategy
along with audit plan; and third, performing risk assessment procedures which help in assessing
the risk of material misstatements through understanding the client. These components of
Module 2 are necessary for performing the components of Module 3 which are performing the
test of controls and substantive audit procedures, audit sampling, computer-aided audit
techniques, procedures for gathering evidence, using the work of other auditor and expects, audit
documentation and audit evidence evaluation. This has made me realize the crucial aspect that it

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is never possible to achieve the ultimate audit objective and to perform audit unless the audit
planning process is duly completed. This establishes important connections between Module 2
and Module 3 as both of these modules are crucial for advanced auditing and assurance. In
addition, there is a key connection between the concept of materiality and assertions under
Module 2 and these are necessary for performing audit in Module 3. Module 2 has described
materiality as the highest level of misstatement that will be tolerated by the users of the financial
statements in the auditors’ judgment. On the other hand, financial statement assertions refer to
explicit or implicit representations made by the audit clients’ management that the auditors use
for considering different types of material misstatements in the financial statements. It implies
materiality is connected with financial statement assertions for performing the audit of financial
statements.
I have also learnt the important fact from my classes on advanced audit and assurance
that along with the similarities, there are also certain differences between Module 2 and Module
3. Within both of these two modules, international standards and Australian standard s of
auditing are different which implies that there are different auditing standards for planning audit
and performing audit. After that, the focus areas of Module 2 and Module are totally different as
they provide directions in two different audit functions. The main areas in Module 2 that require
attention are objectives of an audit of financial statements, engagement terms, audit planning
procedures, understanding the audit client and its business environment, its internal control,
procedures for assessing risk and responding the assessed risks. On the other hand, the key areas
in Module 3 requiring key attention include key principles, tests of control, substantive audit
procedures, gathering evidence in an e-commerce environment, issues in advance evidence
gathering process, using the work of other auditors and experts, documentation of audit and

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evaluation of audit evidences. Therefore, it can be seen that the audit procedures under Module 2
and Module 3 are totally different, but they have equal importance in the audit process.
According to my experience on these two modules, these need to be studied in
combination and without giving any gap since both of these two modules are interconnected.
While studying these two modules, I followed all the instructions of my teachers and they
advised us not to miss any classes as this could create gap of knowledge on these modules. Due
to the interconnected nature of these two modules, I would suggest to follow the charts at the
beginning of each of these modules and plan the study accordingly. At the same time, I followed
different journals on auditing and assurance in order to acquire insight on the topics in Module 2
and Module 3. These journals have assisted me in overcoming the difficulties associated with
understanding certain key concepts of these modules such as materiality, assertions, risk
assessment, substantive audit procedures and others. I have also overcome these difficulties and
doubts by discussion with my teachers. They are always there to help you. One should not miss
out any of the components of these two modules as all the components are connected.. Moreover,
I did additional external research on these modules. For example, I searched for real life cases
and I followed different journals along with the publications of Big Four audit firms on audit
planning and performing audit. These have helped me in gaining additional insight on the topics
and components related to Module 2 and Module 3. Moreover, I would suggest to thoroughly
following all the class notes as they are of great help in understanding these modules.