193 paragraphs found
In reaching a decision on the nature, timing and extent of testing of controls, the auditor may consider factors such as: The nature, frequency and volume of financial instrument transactions; The strength of controls, including whether controls are …
Designing substantive procedures includes consideration of: The use of analytical procedures [23] ―While analytical procedures undertaken by the auditor can be effective as risk assessment procedures to provide the auditor with information about an …
ASA 315, paragraph 6(b) , requires the auditor to apply analytical procedures as risk assessment procedures to assist in assessing the risks of material misstatement in order to provide a basis for designing and implementing responses to the assessed …
For example, in the case of an asset-backed security, in responding to the risks of material misstatement for such a security, the auditor may consider performing some of the following audit procedures: Examining contractual documentation to understand …
Although the purpose of a test of controls is different from the purpose of a test of details, it may be efficient to perform both at the same time by, for example: Performing a test of controls and a test of details on the same transaction (for example, …
Paragraphs 11–12 and 22–23 of ASA 330 establish requirements when the auditor performs procedures at an interim period and explains how such audit evidence can be …
After assessing the risks associated with financial instruments, the engagement team determines the timing of planned tests of controls and substantive audit procedures. The timing of planned audit procedures varies depending on a number of factors, …
While it is necessary to undertake most of the audit procedures in relation to valuation and presentation at the period end, audit procedures in relation to other assertions such as completeness and existence can usefully be tested at an interim period. …
Auditors may perform some tests on models as of an interim date, for example, by comparing the output of the model to market transactions. Another possible interim procedure for instruments with observable inputs is to test the reasonableness of the …
Areas of more significant judgement are often tested close to, or at, the period end as: Valuations can change significantly in a short period of time, making it difficult to compare and reconcile interim balances with comparable information at the …