41 paragraphs found
The auditor shall obtain sufficient appropriate audit evidence regarding the presentation and disclosure of segment information in accordance with the applicable financial reporting framework by: (Ref: Para . A26 ) Obtaining an understanding of the …
See ASA 705 Modifications to the Opinion in the Independent Auditor’s Report . …
Management ordinarily establishes procedures under which inventory is physically counted at least once a year to serve as a basis for the preparation of the financial report and, if applicable, to ascertain the reliability of the entity’s perpetual …
Attendance at physical inventory counting involves: Inspecting the inventory to ascertain its existence and evaluate its condition, and performing test counts; Observing compliance with management’s instructions and the performance of procedures for …
Matters relevant in planning attendance at physical inventory counting (or in designing and performing audit procedures pursuant to paragraphs 4-8 of this Auditing Standard) include, for example: The risks of material misstatement related to inventory. …
Matters relevant in evaluating management’s instructions and procedures for recording and controlling the physical inventory counting include whether they address, for example: The application of appropriate control activities, for example, collection of …
Observing the performance of management’s count procedures, for example those relating to control over the movement of inventory before, during and after the count, assists the auditor in obtaining audit evidence that management’s instructions and count …
Inspecting inventory when attending physical inventory counting assists the auditor in ascertaining the existence of the inventory (though not necessarily its ownership), and in identifying, for example, obsolete, damaged or ageing inventory. …
Performing test counts, for example by tracing items selected from management’s count records to the physical inventory and tracing items selected from the physical inventory to management’s count records, provides audit evidence about the completeness …
In addition to recording the auditor’s test counts, obtaining copies of management’s completed physical inventory count records assists the auditor in performing subsequent audit procedures to determine whether the entity’s final inventory records …