31386 paragraphs found
Control Environment, The Entity’s Risk Assessment Process and the Entity’s Process to Monitor the System of Internal Control (Ref: Para. 21–24) …
The controls in the control environment, the entity’s risk assessment process and the entity’s process to monitor the system of internal control are primarily indirect controls (i.e., controls that are not sufficiently precise to prevent, detect or …
Why the auditor is required to understand the control environment, the entity’s risk assessment process and the entity’s process to monitor the system of internal …
The control environment provides an overall foundation for the operation of the other components of the system of internal control. The control environment does not directly prevent, or detect and correct, misstatements. It may, however, influence the …
Because these components are foundational to the entity’s system of internal control, any deficiencies in their operation could have pervasive effects on the preparation of the financial report. Therefore, the auditor’s understanding and evaluations of …
Obtaining an understanding of the control environment (Ref: Para. 21) Scalability …
The nature of the control environment in a less complex entity is likely to be different from the control environment in a more complex entity. For example, those charged with governance in less complex entities may not include an independent or outside …
In addition, audit evidence about elements of the control environment in less complex entities may not be available in documentary form, in particular where communication between management and other personnel is informal, but the evidence may still be …
Audit evidence for the auditor’s understanding of the control environment may be obtained through a combination of enquiries and other risk assessment procedures (i.e., corroborating enquiries through observation or inspection of …