The auditor’s understanding of the sources of information used by the entity in monitoring the entity’s system of internal control, including whether the information used is relevant and reliable, assists the auditor in evaluating whether the entity’s …

Evaluating the entity’s process to monitor the system of internal control (Ref: Para 24(c)) Why the auditor evaluates whether the entity’s process to monitor the system of internal control is …

The auditor’s evaluation about how the entity undertakes ongoing and separate evaluations for monitoring the effectiveness of controls assists the auditor in understanding whether the other components of the entity’s system of internal control are present …

Evaluating whether the entity’s process to monitor the system of internal control is appropriate (Ref: Para. 24(c)) …

The auditor’s evaluation of the appropriateness of the entity’s process to monitor the system of internal control is based on the auditor’s understanding of the entity’s process to monitor the system of internal …

Information System and Communication, and Control Activities (Ref: Para. 25‒26) …

The controls in the information system and communication, and control activities components are primarily direct controls (i.e., controls that are sufficiently precise to prevent, detect or correct misstatements at the assertion …

Why the auditor Is required to understand the information system and communication and controls in the control activities component …

The auditor is required to understand the entity’s information system and communication because understanding the entity’s policies that define the flows of transactions and other aspects of the entity’s information processing activities relevant to the …

The auditor is required to identify specific controls in the control activities component, and evaluate the design and determine whether the controls have been implemented, as it assists the auditor’s understanding about management’s approach to …