Guide to Using International Standards on Auditing in - IFAC
Guide to Using International Standards on Auditing in - IFAC
Guide to Using International Standards on Auditing in - IFAC
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170<br />
<str<strong>on</strong>g>Guide</str<strong>on</strong>g> <str<strong>on</strong>g>to</str<strong>on</strong>g> <str<strong>on</strong>g>Us<strong>in</strong>g</str<strong>on</strong>g> <str<strong>on</strong>g>Internati<strong>on</strong>al</str<strong>on</strong>g> <str<strong>on</strong>g>Standards</str<strong>on</strong>g> <strong>on</strong> <strong>Audit<strong>in</strong>g</strong> <strong>in</strong> the Audits of Small- and Medium-Sized Entities Volume 1—Core C<strong>on</strong>cepts<br />
Paragraph #<br />
Relevant Extracts from ISAs<br />
570.24 If there is significant delay <strong>in</strong> the approval of the f<strong>in</strong>ancial statements by management or<br />
those charged with governance after the date of the f<strong>in</strong>ancial statements, the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r shall<br />
<strong>in</strong>quire as <str<strong>on</strong>g>to</str<strong>on</strong>g> the reas<strong>on</strong>s for the delay. If the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r believes that the delay could be related<br />
<str<strong>on</strong>g>to</str<strong>on</strong>g> events or c<strong>on</strong>diti<strong>on</strong>s relat<strong>in</strong>g <str<strong>on</strong>g>to</str<strong>on</strong>g> the go<strong>in</strong>g c<strong>on</strong>cern assessment, the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r shall perform<br />
those additi<strong>on</strong>al audit procedures necessary, as described <strong>in</strong> paragraph 16, as well as c<strong>on</strong>sider<br />
the effect <strong>on</strong> the audi<str<strong>on</strong>g>to</str<strong>on</strong>g>r’s c<strong>on</strong>clusi<strong>on</strong> regard<strong>in</strong>g the existence of a material uncerta<strong>in</strong>ty, as<br />
described <strong>in</strong> paragraph 17.<br />
The f<strong>in</strong>al step is <str<strong>on</strong>g>to</str<strong>on</strong>g> determ<strong>in</strong>e the impact of identified events/c<strong>on</strong>diti<strong>on</strong>s <strong>on</strong> the audit report and communicate<br />
the decisi<strong>on</strong> <str<strong>on</strong>g>to</str<strong>on</strong>g> management and those charged with governance, where applicable. The follow<strong>in</strong>g exhibit<br />
summarizes the requirements.<br />
Exhibit 14.5-1<br />
Use of Go<strong>in</strong>g-C<strong>on</strong>cern<br />
Assumpti<strong>on</strong> Appropriate<br />
but a Material<br />
Uncerta<strong>in</strong>ty Exists<br />
Do f<strong>in</strong>ancial statements<br />
fully describe events/<br />
c<strong>on</strong>diti<strong>on</strong>s and disclose<br />
existence of material<br />
uncerta<strong>in</strong>ty?<br />
Yes<br />
Unmodified op<strong>in</strong>i<strong>on</strong> plus<br />
“Emphasis of Matter”<br />
paragraph<br />
No<br />
Express a qualified<br />
or adverse op<strong>in</strong>i<strong>on</strong>,<br />
and state material<br />
uncerta<strong>in</strong>ty exists<br />
Use of Go<strong>in</strong>g-C<strong>on</strong>cern<br />
Assumpti<strong>on</strong> Inappropriate<br />
Express an<br />
adverse op<strong>in</strong>i<strong>on</strong>