31386 paragraphs found
For the audits of public sector entities, there may be particular laws or regulations that affect the entity’s operations. Such elements may be an essential consideration when obtaining an understanding of the entity and its …
Other external factors affecting the entity that the auditor may consider include the general economic conditions, interest rates and availability of financing, and inflation or currency …
Measures Used by Management to Assess the Entity’s Financial Performance (Ref: Para. 19(a)(iii)) Why the auditor understands measures used by …
An understanding of the entity’s measures assists the auditor in considering whether such measures, whether used externally or internally, create pressures on the entity to achieve performance targets. These pressures may motivate management to take …
Measures may also indicate to the auditor the likelihood of risks of material misstatement of related financial report information. For example, performance measures may indicate that the entity has unusually rapid growth or profitability when compared to …
Management and others ordinarily measure and review those matters they regard as important. Enquiries of management may reveal that it relies on certain key indicators, whether publicly available or not, for evaluating financial performance and taking …
Key indicators used for evaluating financial performance may include: Key performance indicators (financial and non-financial) and key ratios, trends and operating statistics. Period-on-period financial performance analyses. Budgets, forecasts, variance …