51 paragraphs found
A key consideration in audits involving financial instruments, particularly complex financial instruments, is the competence of the auditor. ASA 220 [15] requires the engagement partner to be satisfied that the engagement team, and any auditor’s experts …
The auditor may find it useful to obtain an understanding of how the financial instruments relate to the fair value hierarchy. Ordinarily, the risk of material misstatement, and the level of audit procedures to be applied, increases as the level of …
In testing how management values the financial instrument and in responding to the assessed risks of material misstatement in accordance with ASA 540, [29] the auditor undertakes one or more of the following procedures, taking account of the nature of the …
In some cases, auditors may be required, [45] or may consider it appropriate, to communicate directly with regulators or prudential supervisors, in addition to those charged with governance, regarding matters relating to financial instruments. Such …
For example, ASA 250 Consideration of Laws and Regulations in an Audit of a Financial Report requires auditors to determine whether there is a responsibility to report identified or suspected non-compliance with laws and regulations to parties outside the …
Areas where the work of the internal audit function may be particularly relevant are: [18] Developing a general overview of the extent of use of financial instruments; Evaluating the appropriateness of policies and procedures and management’s compliance …
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 …
Examples of matters that the auditor may consider when obtaining an understanding of the entity’s financial instruments include: To which types of financial instruments the entity is exposed. The use to which they are put. Management’s and, where …
Paragraph 8 of ASA 500 contains requirements for the auditor when evaluating evidence from an expert engaged by management. The extent of the auditor’s procedures in relation to a management’s expert and that expert’s work depend on the significance of …
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 …