74 paragraphs found
An understanding of the nature of an entity enables the auditor to understand such matters as: Whether the entity has a complex structure, for example with subsidiaries or other components in multiple locations. Complex structures often introduce issues …
As part of the discussion among the engagement team required by paragraph 10 , consideration of the disclosure requirements of the applicable financial reporting framework assists in identifying early in the audit where there may be risks of material …
During the audit, information may come to the auditor’s attention that differs significantly from the information on which the risk assessment was based. For example, the risk assessment may be based on an expectation that certain controls are operating …
Although the auditor is required to perform all the risk assessment procedures described in paragraph 6 in the course of obtaining the required understanding of the entity (see paragraphs 11-24 ), the auditor is not required to perform all of them for …
If an entity has an internal audit function, enquiries of the appropriate individuals within the function may provide information that is useful to the auditor in obtaining an understanding of the entity and its environment, and in identifying and …
Establishing communications with the appropriate individuals within an entity’s internal audit function early in the engagement, and maintaining such communications throughout the engagement, can facilitate effective sharing of information. It creates an …
The risk assessment procedures shall include the following: Enquiries of management, of appropriate individuals within the internal audit function (if the function exists) and of others within the entity who in the auditor’s judgement may have information …
The use of manual or automated elements in internal control also affects the manner in which transactions are initiated, recorded, processed, and reported: Controls in a manual system may include such procedures as approvals and reviews of transactions, …
Examples of matters that the auditor may consider when obtaining an understanding of the entity’s objectives, strategies and related business risks that may result in a risk of material misstatement of the financial report include: Industry developments …
For this purpose, the auditor shall: Identify risks throughout the process of obtaining an understanding of the entity and its environment, including relevant controls that relate to the risks, and by considering the classes of transactions, account …