119 paragraphs found
Controls that address risks of material misstatement at the assertion level that are expected to be identified for all audits are controls over journal entries, because the manner in which an entity incorporates information from transaction processing …
The auditor’s understanding of the entity and its environment, and the applicable financial reporting framework, also informs how the auditor plans and performs further audit procedures, for example, when: Developing expectations for use when performing …
The auditor’s previous experience with the entity and audit procedures performed in previous audits may provide the auditor with information about such matters as: Past misstatements and whether they were corrected on a timely basis. The nature of the …
Due to the nature of a risk of material misstatement, and the control activities that address that risk, in some circumstances the only way to obtain sufficient appropriate audit evidence is to test the operating effectiveness of controls. Accordingly, …
… and the Conduct of an Audit in Accordance with Australian Auditing Standards . …
Evaluating the design and determining the implementation of identified controls in the control activities component is not sufficient to test their operating effectiveness. However, for automated controls, the auditor may plan to test the operating …
For the audits of less complex entities, the form and extent of documentation may be simple and relatively brief. The form and extent of the auditor’s documentation is influenced by the nature, size and complexity of the entity and its system of internal …
Other relevant sources of information include: The auditor’s procedures regarding acceptance or continuance of the client relationship or the audit engagement in accordance with ASA 220, including the conclusions reached thereon. [25] Other engagements …
The auditor’s understanding, including the related evaluations, of the control environment and other components of the system of internal control may raise doubts about the auditor’s ability to obtain audit evidence on which to base the audit opinion or …
As part of the discussion among the engagement team, 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 misstatement in relation to …