31386 paragraphs found
Testing the operating effectiveness of relevant controls may be appropriate when inherent risk is assessed as higher on the spectrum of inherent risk, including for significant risks. This may be the case when the accounting estimate is subject to or …
In determining the nature, timing and extent of testing of the operating effectiveness of controls relating to accounting estimates, the auditor may consider factors such as: The nature, frequency and volume of transactions; The effectiveness of the …
Substantive Procedures Alone Cannot Provide Sufficient Appropriate Audit Evidence …
In some industries, such as the financial services industry, management makes extensive use of IT to conduct business. It may therefore be more likely that there are risks related to certain accounting estimates for which substantive procedures alone …
Circumstances when risks for which substantive procedures alone cannot provide sufficient appropriate audit evidence at the assertion level may exist include: When controls are necessary to mitigate risks relating to the initiation, recording, processing, …
As part of the audit of the financial report for certain entities (such as a bank or insurer), the auditor also may be required by law or regulation to undertake additional procedures in relation to, or to provide an assurance conclusion on, internal …
When the auditor’s further audit procedures in response to a significant risk consist only of substantive procedures, ASA 330 [46] requires that those procedures include tests of details. Such tests of details may be designed and performed under each of …
Professional scepticism is necessary for the critical assessment of audit evidence, and a robust and open engagement team discussion, including for recurring audits, may lead to improved identification and assessment of the risks of material misstatement. …
Obtaining Audit Evidence from Events Occurring up to the Date of the Auditor’s Report (Ref: Para. 21 ) …