31386 paragraphs found
The auditor’s understanding of the information system includes the IT environment relevant to the flows of transactions and processing of information in the entity’s information system because the entity’s use of IT applications or other aspects in the IT …
The understanding of the entity’s business model and how it integrates the use of IT may also provide useful context to the nature and extent of IT expected in the information …
The auditor’s understanding of the IT environment may focus on identifying, and understanding the nature and number of, the specific IT applications and other aspects of the IT environment that are relevant to the flows of transactions and processing of …
The auditor may identify the IT applications and supporting IT infrastructure concurrently with the auditor’s understanding of how information relating to significant classes of transactions, account balances and disclosures flows into, through and out …
Obtaining an understanding of the entity’s communication (Ref: Para. 25(b)) Scalability …
In larger, more complex entities, information the auditor may consider when understanding the entity’s communication may come from policy manuals and financial reporting …
In less complex entities, communication may be less structured (e.g., formal manuals may not be used) due to fewer levels of responsibility and management’s greater visibility and availability. Regardless of the size of the entity, open communication …
Evaluating whether the relevant aspects of the information system support the preparation of the entity’s financial report (Ref: Para. 25(c)) …
The auditor’s evaluation of whether the entity’s information system and communication appropriately supports the preparation of the financial report is based on the understanding obtained in …