Guide to Using International Standards on Auditing in - IFAC

More documents

Recommendations

Info

210 <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 16.4 Specific Documentation Requirements Risk Assessment Paragraph # Relevant Extracts from ISAs 240.44 The audi<strong>to</strong>r shall include the following in the audit documentation of the audi<strong>to</strong>r’s understanding of the entity and its environment and the assessment of the risks of material misstatement required by ISA 315: (a) The significant decisions reached during the discussion among the engagement team regarding the susceptibility of the entity’s financial statements <strong>to</strong> material misstatement due <strong>to</strong> fraud; and (b) The identified and assessed risks of material misstatement due <strong>to</strong> fraud at the financial statement level and at the assertion level. 240.47 If the audi<strong>to</strong>r has concluded that the presumption that there is a risk of material misstatement due <strong>to</strong> fraud related <strong>to</strong> revenue recognition is not applicable in the circumstances of the engagement, the audi<strong>to</strong>r shall include in the audit documentation the reasons for that conclusion. 300.12 The audi<strong>to</strong>r shall include in the audit documentation: (a) The overall audit strategy; (b) The audit plan; and (c) Any significant changes made during the audit engagement <strong>to</strong> the overall audit strategy or the audit plan, and the reasons for such changes. (Ref: Para. A16 – 19) 315.32 The audi<strong>to</strong>r shall include in the audit documentation: (a) The discussion among the engagement team where required by paragraph 10, and the significant decisions reached; (b) Key elements of the understanding obtained regarding each of the aspects of the entity and its environment specified in paragraph 11 and of each of the internal control components specified in paragraphs 14-24; the sources of information from which the understanding was obtained; and the risk assessment procedures performed; (c) The identified and assessed risks of material misstatement at the financial statement level and at the assertion level as required by paragraph 25; and (d) The risks identified, and related controls about which the audi<strong>to</strong>r has obtained an understanding, as a result of the requirements in paragraphs 27-30. (Ref: Para. A131 – A134)
211 <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 Typical audit documentation would include the items listed below. Exhibit 16.4-1 Risk Assessment Phase • Pre-engagement (client acceptance) procedures. • Independence and ethics assessments. • Terms of engagement. • Materiality considerations. • Overall audit strategy. • Audit team discussions, including possible causes of material misstatement due <strong>to</strong> fraud. • Risk assessment procedures performed, and the results. • Assessed risks of material misstatement identified (at overall and assertion levels), based on the understanding of the entity obtained and related internal control (if any). • Significant risks. • Communications with management and those charged with governance. Comments Remember <strong>to</strong> update risk assessment documentation for: • Any new risks identified later in the audit; and • Changes needed in risk assessments or materiality identified as a result of performing further audit procedures. Risk Response Paragraph # Relevant Extracts from ISAs 230.9 In documenting the nature, timing and extent of audit procedures performed, the audi<strong>to</strong>r shall record: (a) The identifying characteristics of the specific items or matters tested; (Ref: Para. A12) (b) Who performed the audit work and the date such work was completed; and (c) Who reviewed the audit work performed and the date and extent of such review. (Ref: Para. A13) 240.45 The audi<strong>to</strong>r shall include the following in the audit documentation of the audi<strong>to</strong>r’s responses <strong>to</strong> the assessed risks of material misstatement required by ISA 330: (a) The overall responses <strong>to</strong> the assessed risks of material misstatement due <strong>to</strong> fraud at the financial statement level and the nature, timing and extent of audit procedures, and the linkage of those procedures with the assessed risks of material misstatement due <strong>to</strong> fraud at the assertion level; and (b) The results of the audit procedures, including those designed <strong>to</strong> address the risk of management override of controls. 330.28 The audi<strong>to</strong>r shall include in the audit documentation: (a) The overall responses <strong>to</strong> address the assessed risks of material misstatement at the financial statement level, and the nature, timing, and extent of the further audit procedures performed; (b) The linkage of those procedures with the assessed risks at the assertion level; and (c) The results of the audit procedures, including the conclusions where these are not otherwise clear. (Ref: Para. A63) 330.30 The audi<strong>to</strong>rs’ documentation shall demonstrate that the financial statements agree or reconcile with the underlying accounting records.
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 155 and 156:
155 Guide
Page 157 and 158:
157 Guide
Page 159 and 160: 159 Guide
Page 161 and 162: 161 14. Going Concern Chapter Conte
Page 171 and 172: 171 15. Summary of Other ISA Requir
Page 205 and 206: 205 16. Audit Documentation Chapter
Page 209: 209 Guide
show all

Guide to Using International Standards on Auditing in - IFAC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?