119 paragraphs found
When the auditor plans to test the operating effectiveness of an automated control, the auditor may also plan to test the operating effectiveness of the relevant general IT controls that support the continued functioning of that automated control to …
The auditor may expect, based on experience from the previous audit or based on current period risk assessment procedures, that management does not have effectively designed or implemented controls to address a significant risk. In such instances, the …
The auditor’s assessment of inherent risk may also influence the identification of controls in the control activities component. For example, the auditor’s identification of controls relating to significant risks may only be identifiable when the auditor …
As explained in ASA 320, [63] materiality and audit risk are considered when identifying and assessing the risks of material misstatement in classes of transactions, account balances and disclosures. The auditor’s determination of materiality is a matter …
This ASA deals with the auditor’s use of analytical procedures as risk assessment procedures. ASA 520 [24] deals with the auditor's use of analytical procedures as substantive procedures (“substantive analytical procedures”) and the auditor’s …
The auditor’s understanding of the entity and its environment, and the applicable financial reporting framework, assists the auditor in understanding the events and conditions that are relevant to the entity, and in identifying how inherent risk factors …
Analytical procedures performed as risk assessment procedures may: Include both financial and non-financial information, for example, the relationship between sales and square footage of selling space or volume of goods sold (nonfinancial). Use data …
Risk assessment procedures may include observation or inspection of the following: The entity’s operations. Internal documents (such as business plans and strategies), records, and internal control manuals. Reports prepared by management (such as …
In manual general ledger systems, non-standard journal entries may be identified through inspection of ledgers, journals, and supporting documentation. When automated procedures are used to maintain the general ledger and prepare financial reports, such …
See ASA 300, Planning an Audit of a Financial Report, paragraphs 7 , 9 and A11 . …