34 paragraphs found
The auditor needs to obtain an understanding of the entity and its environment and assess the risks of material misstatement in a financial report audit in accordance with ASA 315 Understanding the Entity and Its Environment and Assessing the Risks of …
If the auditor assesses significant risks in the area of investments in associates, this will impact all areas of the audit including planning, audit testing and gathering of appropriate audit evidence to mitigate these …
The audit of equity accounting balances and adjustments requires adequate attention during the planning of the audit. The auditor develops the audit plan in accordance with ASA 300 Planning an Audit of a Financial Report and ASA 330 The Auditor’s …
The investor’s auditor may meet with the management of the investor and plan in relation to such matters as: the provision of evidence to support identification of associates; the nature and the adequacy of policies and adjustments between the investor …
The investor’s auditor also considers whether there are any legal restrictions that may affect the availability of information from an associate. There may be legal restrictions applicable to the communication of confidential information by those charged …
The responsibility for establishing whether or not significant influence exists rests with those charged with governance of the investor. The evidence used to determine significant influence is obtained by the auditor and documented in the audit working …
Generally, where an investor holds directly or indirectly, 20 per cent or more of the voting power in an investee, in the absence of evidence to the contrary, there could be the presumption of significant influence. However, this percentage is not an …
AASB 128 provides examples of factors which individually, or in combination, may indicate the existence of significant influence. In cases where those charged with governance of the investor are asserting that the provisions of AASB 128 apply, the auditor …
Examples of the evidence that the auditor examines, depending on the assertions being made, are: the investee’s constituent document. This may indicate that the remainder of the voting power of the investee is concentrated with a limited number of equity …
The auditor evaluates the information presented by the management or governing body of the investee, and applies a combination of procedures appropriate to the circumstances, to form an opinion on the assertion of significant influence, or otherwise, made …