105 paragraphs found
Substantive procedure means an audit procedure designed to detect material misstatements at the assertion level. Substantive procedures comprise: Tests of details (of classes of transactions, account balances, and disclosures); and Substantive analytical …
Test of controls means an audit procedure designed to evaluate the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the assertion …
Overall responses to address the assessed risks of material misstatement at the financial report level may include: Emphasising to the audit team the need to maintain professional scepticism. Assigning more experienced staff or those with special skills …
Evaluating the appropriate presentation, arrangement and content of the financial report, includes, for example, consideration of the terminology used as required by the applicable financial reporting framework, the level of detail provided, and the basis …
An audit of a financial report is a cumulative and iterative process. As the auditor performs planned audit procedures, the audit evidence obtained may cause the auditor to modify the nature, timing or extent of other planned audit procedures. …
The form and extent of audit documentation is a matter of professional judgement, and is influenced by the nature, size and complexity of the entity and its internal control, availability of information from the entity and the audit methodology and …
Testing the operating effectiveness of controls is different from obtaining an understanding of and evaluating the design and implementation of controls. However, the same types of audit procedures are used. The auditor may, therefore, decide it is …
Further, although some risk assessment procedures may not have been specifically designed as tests of controls, they may nevertheless provide audit evidence about the operating effectiveness of the controls and, consequently, serve as tests of controls. …
In addition, the auditor may design a test of controls to be performed concurrently with a test of details on the same transaction. Although the purpose of a test of controls is different from the purpose of a test of details, both may be accomplished …
In some cases, as discussed in ASA 315, the auditor may find it impossible to design effective substantive procedures that by themselves provide sufficient appropriate audit evidence at the assertion level. [3] This may occur when an entity conducts its …