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Understanding the entity’s information system also includes an understanding of the resources to be used in the entity’s information processing activities. Information about the human resources involved that may be relevant to understanding risks to the …
Matters the auditor may consider when understanding the policies that define the flows of information relating to the entity’s significant classes of transactions, account balances, and disclosures in the information system and communication component …
Obtaining an understanding of the entity’s business processes, which include how transactions are originated, assists the auditor in obtaining an understanding of the entity’s information system in a manner that is appropriate to the entity’s …
The auditor’s understanding of the information system may be obtained in various ways and may include: Enquiries of relevant personnel about the procedures used to initiate, record, process and report transactions or about the entity’s financial reporting …
The auditor may also use automated techniques to obtain direct access to, or a digital download from, the databases in the entity’s information system that store accounting records of transactions. By applying automated tools or techniques to this …
Information obtained from outside of the general and subsidiary ledgers …
Financial reports may contain information that is obtained from outside of the general and subsidiary ledgers. Examples of such information that the auditor may consider include: Information obtained from lease agreements relevant to disclosures in the …
Certain amounts or disclosures in the entity’s financial report (such as disclosures about credit risk, liquidity risk, and market risk) may be based on information obtained from the entity’s risk management system. However, the auditor is not required to …
The entity’s use of information technology in the information system Why does the auditor understand the IT environment relevant to the information …