31386 paragraphs found
Governance Why the auditor obtains an understanding of governance …
Understanding the entity’s governance may assist the auditor with understanding the entity’s ability to provide appropriate oversight of its system of internal control. However, this understanding may also provide evidence of deficiencies, which may …
Matters that may be relevant for the auditor to consider in obtaining an understanding of the governance of the entity include: Whether any or all of those charged with governance are involved in managing the entity. The existence (and separation) of a …
The Entity’s Business Model Appendix 1 sets out additional considerations for obtaining an understanding of the entity and its business model, as well as additional considerations for auditing special purpose entities. Why the auditor obtains an …
Understanding the entity’s objectives, strategy and business model helps the auditor to understand the entity at a strategic level, and to understand the business risks the entity takes and faces. An understanding of the business risks that have an effect …
Not all aspects of the business model are relevant to the auditor’s understanding. Business risks are broader than the risks of material misstatement of the financial report, although business risks include the latter. The auditor does not have a …
Business risks increasing the susceptibility to risks of material misstatement may arise from: Inappropriate objectives or strategies, ineffective execution of strategies, or change or complexity. A failure to recognise the need for change may also give …
Examples of matters that the auditor may consider when obtaining an understanding of the entity’s business model, objectives, strategies and related business risks that may result in a risk of material misstatement of the financial report include: …