31386 paragraphs found
The risks of material misstatement may exist at two levels: The overall financial report level; and The assertion level for classes of transactions, account balances, and …
Risks of material misstatement at the overall financial report level refer to risks of material misstatement that relate pervasively to the financial report as a whole and potentially affect many …
Risks of material misstatement at the assertion level are assessed 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 express an …
The risks of material misstatement at the assertion level consist of two components: inherent risk and control risk. Inherent risk and control risk are the entity’s risks; they exist independently of the audit of the financial …
Inherent risk is influenced by inherent risk factors. Depending on the degree to which the inherent risk factors affect the susceptibility to misstatement of an assertion, the level of inherent risk varies on a scale that is referred to as the spectrum of …
In discussing the planned use of their work with the internal audit function as a basis for co-ordinating the respective activities, it may be useful to address the following: The timing of such work. The nature of the work performed. The extent of audit …
Co-ordination between the external auditor and the internal audit function is effective when, for example: Discussions take place at appropriate intervals throughout the period. The external auditor informs the internal audit function of significant …
ASA 200 [24] discusses the importance of the auditor planning and performing the audit with professional scepticism, including being alert to information that brings into question the reliability of documents and responses to enquiries to be used as …
Procedures to Determine the Adequacy of Work of the Internal Audit Function (Ref: Para. 23-24) …