31386 paragraphs found
The nature and extent of the required understanding is a matter of the auditor’s professional judgement and varies from entity to entity based on the nature and circumstances of the entity, including: The size and complexity of the entity, including its …
The auditor’s risk assessment procedures to obtain the required understanding may be less extensive in audits of less complex entities and more extensive for entities that are more complex. The depth of the understanding that is required by the auditor is …
Some financial reporting frameworks allow smaller entities to provide simpler and less detailed disclosures in the financial report. However, this does not relieve the auditor of the responsibility to obtain an understanding of the entity and its …
The entity’s use of IT and the nature and extent of changes in the IT environment may also affect the specialised skills that are needed to assist with obtaining the required …
The Entity and Its Environment (Ref: Para. 19(a)) The Entity’s Organisational Structure, Ownership and Governance, and Business Model (Ref: Para. 19(a)(i)) The entity’s organisational structure and …
An understanding of the entity’s organisational structure and ownership may enable the auditor to understand such matters as: The complexity of the entity’s structure. Example: The entity may be a single entity or the entity’s structure may include …
The auditor may use automated tools and techniques to understand flows of transactions and processing as part of the auditor’s procedures to understand the information system. An outcome of these procedures may be that the auditor obtains information …
Ownership of a public sector entity may not have the same relevance as in the private sector because decisions related to the entity may be made outside of the entity as a result of political processes. Therefore, management may not have control over …