72 paragraphs found
See ASA 502 Audit Evidence—Specific Considerations for Litigation and Claims . …
In certain circumstances, the auditor may identify an assessed risk of material misstatement at the assertion level for which a response to a positive confirmation request is necessary to obtain sufficient appropriate audit evidence. Such circumstances …
Exceptions noted in responses to confirmation requests may indicate misstatements or potential misstatements in the financial statements. When a misstatement is identified, the auditor is required by ASA 240 to evaluate whether such misstatement is …
Some exceptions do not represent misstatements. For example, the auditor may conclude that differences in responses to confirmation requests are due to timing, measurement, or clerical errors in the external confirmation …
When the auditor concludes that a response is unreliable, the auditor may need to revise the assessment of the risks of material misstatement at the assertion level and modify planned audit procedures accordingly, in accordance with ASA 315. [18] For …
Examples of alternative audit procedures the auditor may perform include: For accounts receivable balances – examining specific subsequent cash receipts, shipping documentation, and sales near the period-end. For accounts payable balances – examining …
The nature and extent of alternative audit procedures are affected by the account and assertion in question. A non-response to a confirmation request may indicate a previously unidentified risk of material misstatement. In such situations, the auditor …