31386 paragraphs found
The applicable financial reporting framework in a public sector entity is determined by the legislative and regulatory frameworks relevant to each jurisdiction or within each geographical area. Matters that may be considered in the entity’s application of …
How Inherent Risk Factors Affect Susceptibility of Assertions to Misstatement ( Ref: Para. 19(c) ) Appendix 2 provides examples of events and conditions that may give rise to the existence of risks of material misstatement, categorised by inherent risk …
Understanding the entity and its environment, and the applicable financial reporting framework, assists the auditor in identifying events or conditions, the characteristics of which may affect the susceptibility of assertions about classes of …
The auditor’s identification of risks of material misstatement at the assertion level and assessment of inherent risk may also be influenced by audit evidence obtained by the auditor in performing other risk assessment procedures, further audit procedures …
The effect of inherent risk factors on a class of transactions, account balance or disclosure …
The extent of susceptibility to misstatement of a class of transactions, account balance or disclosure arising from complexity or subjectivity is often closely related to the extent to which it is subject to change or uncertainty. Example: If the entity …
The greater the extent to which a class of transactions, account balance or disclosure is susceptible to misstatement because of complexity or subjectivity, the greater the need for the auditor to apply professional scepticism. Further, when a class of …
Events or conditions that may affect susceptibility to misstatement due to management bias may also affect susceptibility to misstatement due to other fraud risk factors. Accordingly, this may be relevant information for use in accordance with …
Obtaining an Understanding of the Entity’s System of Internal Control (Ref: Para. 21‒27) Appendix 3 further describes the nature of the entity’s system of internal control and inherent limitations of internal control, respectively. Appendix 3 also …