31386 paragraphs found
Due to the nature of a risk of material misstatement, and the control activities that address that risk, in some circumstances the only way to obtain sufficient appropriate audit evidence is to test the operating effectiveness of controls. Accordingly, …
Paragraph 26(a)(iii) also requires the identification of controls that address risks for which substantive procedures alone cannot provide sufficient appropriate audit evidence because the auditor is required, in accordance with ASA 330, [59] to design …
Determining risks for which substantive procedures alone do not provide sufficient appropriate audit evidence …
Where routine business transactions are subject to highly automated processing with little or no manual intervention, it may not be possible to perform only substantive procedures in relation to the risk. This may be the case in circumstances where a …
ASA 540 provides further guidance related to accounting estimates about risks for which substantive procedures alone do not provide sufficient appropriate audit evidence. [60] In relation to accounting estimates this may not be limited to automated …
The auditor’s plans to test the operating effectiveness of controls is based on the expectation that controls are operating effectively, and this will form the basis of the auditor’s assessment of control risk. The initial expectation of the operating …
The auditor’s assessment of control risk may be performed in different ways depending on preferred audit techniques or methodologies, and may be expressed in different …
If the auditor plans to test the operating effectiveness of controls, it may be necessary to test a combination of controls to confirm the auditor’s expectation that the controls are operating effectively. The auditor may plan to test both direct and …
When the auditor plans to test the operating effectiveness of an automated control, the auditor may also plan to test the operating effectiveness of the relevant general IT controls that support the continued functioning of that automated control to …