Guide to Using International Standards on Auditing in - IFAC

More documents

Recommendations

Info

204 <strong>Guide</strong> <strong>to</strong> <strong>Using</strong> <strong>International</strong> <strong>Standards</strong> on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts Paragraph # Relevant Extracts from ISAs 720.14 If, on reading the other information for the purpose of identifying material inconsistencies, the audi<strong>to</strong>r becomes aware of an apparent material misstatement of fact, the audi<strong>to</strong>r shall discuss the matter with management. (Ref: Para. A10) 720.15 If, following such discussions, the audi<strong>to</strong>r still considers that there is an apparent material misstatement of fact, the audi<strong>to</strong>r shall request management <strong>to</strong> consult with a qualified third party, such as the entity’s legal counsel, and the audi<strong>to</strong>r shall consider the advice received. 720.16 If the audi<strong>to</strong>r concludes that there is a material misstatement of fact in the other information which management refuses <strong>to</strong> correct, the audi<strong>to</strong>r shall notify those charged with governance, unless all of those charged with governance are involved in managing the entity, of the audi<strong>to</strong>r’s concern regarding the other information and take any further appropriate action. (Ref: Para. A11) Overview Some entities, such as those with many stakeholders, will publish (on paper or electronically) an annual report or attach some additional information <strong>to</strong> the audited financial statements. Where this occurs, the audi<strong>to</strong>r has a responsibility <strong>to</strong> read the other information <strong>to</strong> identify any information that could undermine the credibility of the financial statements and the audi<strong>to</strong>r’s report. Should such information be found, the audi<strong>to</strong>r needs <strong>to</strong> take appropriate steps <strong>to</strong> rectify the situation. A summary of some of the key requirements is outlined in the exhibit below. Exhibit 15.9-1 Is “other information” presented with the F/S? yes no Does a material inconsistency exist in other information? yes no no Do the audited F/S need <strong>to</strong> be revised? Does management refuse <strong>to</strong> make the revision(s)? yes yes Does the “other information” need revision? no Proceed Notify those charged with governance. Withhold audit report. Determine what other actions are appropriate.
205 16. Audit Documentation Chapter Content The various requirements associated with the documentation of audit planning, audit evidence obtained, and its ultimate s<strong>to</strong>rage. Relevant ISAs ISQC 1, 220, 230, 240, 300, 315, 330 Paragraph # ISA Objective(s) 230.5 The objective of the audi<strong>to</strong>r is <strong>to</strong> prepare documentation that provides: (a) A sufficient and appropriate record of the basis for the audi<strong>to</strong>r’s report; and (b) Evidence that the audit was planned and performed in accordance with ISAs and applicable legal and regula<strong>to</strong>ry requirements. Paragraph # Relevant Extracts from ISAs 230.6 For purposes of the ISAs, the following terms have the meanings attributed below: (a) Audit documentation—The record of audit procedures performed, relevant audit evidence obtained, and conclusions the audi<strong>to</strong>r reached (terms such as “working papers” or “workpapers” are also sometimes used). (b) Audit file—One or more folders or other s<strong>to</strong>rage media, in physical or electronic form, containing the records that comprise the audit documentation for a specific engagement. (c) Experienced audi<strong>to</strong>r—An individual (whether internal or external <strong>to</strong> the firm) who has practical audit experience, and a reasonable understanding of: (i) Audit processes; (ii) ISAs and applicable legal and regula<strong>to</strong>ry requirements; (iii) The business environment in which the entity operates; and (iv) Auditing and financial reporting issues relevant <strong>to</strong> the entity’s industry. 230.7 The audi<strong>to</strong>r shall prepare audit documentation on a timely basis. (Ref: Para. A1)
Page 1 and 2:
Guide to</
Page 3 and 4:
3 Guide to
Page 5 and 6:
5 Guide to
Page 7 and 8:
Disclaimer This Guide</stro
Page 9 and 10:
9 Guide to
Page 11 and 12:
11 Guide t
Page 13 and 14:
13 2. Clarified ISAs In March 2009,
Page 15 and 16:
15 Guide t
Page 17 and 18:
17 Guide t
Page 19 and 20:
Volume 1 Core Concepts
Page 21 and 22:
21 Guide t
Page 23 and 24:
23 Guide t
Page 25 and 26:
25 Guide t
Page 27 and 28:
27 Guide t
Page 29 and 30:
29 Guide t
Page 31 and 32:
31 Guide t
Page 33 and 34:
33 Guide t
Page 35 and 36:
35 Guide t
Page 37 and 38:
37 Guide t
Page 39 and 40:
39 Guide t
Page 41 and 42:
41 Guide t
Page 43 and 44:
43 Guide t
Page 45 and 46:
45 Guide t
Page 47 and 48:
47 Guide t
Page 49 and 50:
49 Guide t
Page 51 and 52:
51 5. Internal Control — Purpose
Page 53 and 54:
53 Guide t
Page 55 and 56:
55 Guide t
Page 57 and 58:
57 Guide t
Page 59 and 60:
59 Guide t
Page 61 and 62:
61 Guide t
Page 63 and 64:
63 Guide t
Page 65 and 66:
65 Guide t
Page 67 and 68:
67 Guide t
Page 69 and 70:
69 Guide t
Page 71 and 72:
71 Guide t
Page 73 and 74:
73 Guide t
Page 75 and 76:
75 Guide t
Page 77 and 78:
77 6. Financial Statement Assertion
Page 79 and 80:
79 Guide t
Page 81 and 82:
81 Guide t
Page 83 and 84:
83 Guide t
Page 85 and 86:
85 Guide t
Page 87 and 88:
87 Guide t
Page 89 and 90:
89 Guide t
Page 91 and 92:
91 Guide t
Page 93 and 94:
93 Guide t
Page 95 and 96:
95 Guide t
Page 97 and 98:
97 Guide t
Page 99 and 100:
99 Guide t
Page 101 and 102:
101 Guide
Page 103 and 104:
103 Guide
Page 105 and 106:
105 Guide
Page 107 and 108:
107 Guide
Page 109 and 110:
109 Guide
Page 111 and 112:
111 Guide
Page 113 and 114:
113 Guide
Page 115 and 116:
115 10. Further Audit Procedures Ch
Page 117 and 118:
117 Guide
Page 119 and 120:
119 Guide
Page 121 and 122:
121 Guide
Page 123 and 124:
123 Guide
Page 125 and 126:
125 Guide
Page 127 and 128:
127 Guide
Page 129 and 130:
129 Guide
Page 131 and 132:
131 Guide
Page 133 and 134:
133 Guide
Page 135 and 136:
135 Guide
Page 137 and 138:
137 Guide
Page 139 and 140:
139 Guide
Page 141 and 142:
141 Guide
Page 143 and 144:
143 Guide
Page 145 and 146:
145 12. Related Parties Chapter Con
Page 147 and 148:
147 Guide
Page 149 and 150:
149 Guide
Page 151 and 152:
151 Guide
Page 153 and 154: 153 Guide
Page 161 and 162: 161 14. Going Concern Chapter Conte
Page 171 and 172: 171 15. Summary of Other ISA Requir
Page 203: 203 Guide
show all

Guide to Using International Standards on Auditing in - IFAC

Create successful ePaper yourself

Delete template?

Save as template?