31386 paragraphs found
Control Deficiencies Within the Entity’s System of Internal Control (Ref: Para. 27) …
In performing the evaluations of each of the components of the entity’s system of internal control, [46] the auditor may determine that certain of the entity’s policies in a component are not appropriate to the nature and circumstances of the entity. Such …
If the auditor has identified one or more control deficiencies, ASA 265 [47] requires the auditor to determine whether, individually or in combination, the deficiencies constitute a significant deficiency. The auditor uses professional judgement in …
(Ref: Para. 28‒37) Why the Auditor Identifies and Assesses the Risks of Material Misstatement …
Risks of material misstatement are identified and assessed by the auditor in order to determine the nature, timing and extent of further audit procedures necessary to obtain sufficient appropriate audit evidence. This evidence enables the auditor to …
Information gathered by performing risk assessment procedures is used as audit evidence to provide the basis for the identification and assessment of the risks of material misstatement. For example, the audit evidence obtained when evaluating the design …
The identification of risks of material misstatement is performed before consideration of any related controls (i.e., the inherent risk), and is based on the auditor’s preliminary consideration of misstatements that have a reasonable possibility of both …
Identifying the risks of material misstatement also provides the basis for the auditor’s determination of relevant assertions, which assists the auditor’s determination of the significant classes of transactions, account balances and …