176 paragraphs found
For purposes of the Australian Auditing Standards, audit risk does not include the risk that the auditor might express an opinion that the financial report is materially misstated when they are not. This risk is ordinarily insignificant. Further, audit …
The risks of material misstatement may exist at two levels: The overall financial report level; and The assertion level for classes of transactions, account balances, and …
Risks of material misstatement at the overall financial report level refer to risks of material misstatement that relate pervasively to the financial report as a whole and potentially affect many …
Risks of material misstatement at the assertion level are assessed in order to determine the nature, timing, and extent of further audit procedures necessary to obtain sufficient appropriate audit evidence. This evidence enables the auditor to express an …
The risks of material misstatement at the assertion level consist of two components: inherent risk and control risk. Inherent risk and control risk are the entity’s risks; they exist independently of the audit of the financial …
Inherent risk is influenced by inherent risk factors. Depending on the degree to which the inherent risk factors affect the susceptibility to misstatement of an assertion, the level of inherent risk varies on a scale that is referred to as the spectrum of …
ASA 230 establishes documentation requirements in those rare and exceptional circumstances where the auditor is unable to comply with a relevant requirement. [33] Australian Auditing Standards do not call for compliance with a requirement that is not …
Whether an objective has been achieved is a matter for the auditor’s professional judgement. That judgement takes account of the results of audit procedures performed in complying with the requirements of the Australian Auditing Standards, and the …
Audit documentation that meets the requirements of ASA 230 and the specific documentation requirements of other relevant Australian Auditing Standards provides evidence of the auditor’s basis for a conclusion about the achievement of the overall …