Guide to Using International Standards on Auditing in - IFAC

More documents

Recommendations

Info

214 <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 Reporting • Copy of the financial statements and the audi<strong>to</strong>r’s report, crossreferenced <strong>to</strong> the audit file chapters. • Reasons for any departure from a relevant ISA requirement, and the alternative procedures performed <strong>to</strong> achieve the aim of that requirement. • Any engagement-completion documents required by the firm. • Copy of all communication with management and those charged with governance. • Audit report date and the documentation completion date (see discussion on file completion below). Comments 16.5 The Experienced Audi<strong>to</strong>r Paragraph # Relevant Extracts from ISAs 230.8 The audi<strong>to</strong>r shall prepare audit documentation that is sufficient <strong>to</strong> enable an experienced audi<strong>to</strong>r, having no previous connection with the audit, <strong>to</strong> understand: (Ref: Para. A2-A5, A16-A17) (a) The nature, timing and extent of the audit procedures performed <strong>to</strong> comply with the ISAs and applicable legal and regula<strong>to</strong>ry requirements; (Ref: Para. A6-A7) (b) The results of the audit procedures performed, and the audit evidence obtained; and (c) Significant matters arising during the audit, the conclusions reached thereon, and significant professional judgments made in reaching those conclusions. (Ref: Para. A8-A11) The audit documentation should be such that an experienced audi<strong>to</strong>r, who has had no previous connection with the audit, is able <strong>to</strong> understand (i.e., without the need for verbal explanations): • The nature, timing, and extent of the audit procedures performed <strong>to</strong> comply with the applicable legal, regula<strong>to</strong>ry and professional requirements; • The results of the audit procedures and the audit evidence obtained; and • The nature of significant matters arising and the conclusions reached.
215 <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 16.6 Electronic Documents Many accounting firms have replaced (or are in the process of replacing) paper-based engagement files with electronic files. In some cases, even though the work was performed and reviewed electronically, paper files are maintained as the permanent record of work performed. Documents/forms are initiated in digital form, client records are scanned electronically, and all data is s<strong>to</strong>red electronically. It is printed on paper only after all the work is completed and reviewed. There are two types of electronic documents: • Work-in-process; and • Static information. Work-in-Process Work-in-process consists of dynamic information that is being developed and updated as the audit progresses. Examples include blank audit forms and letter templates, industry knowledge and key performance indica<strong>to</strong>rs, questionnaires, logic trees, the firm’s policies, diagnostics and the previous period’s financial data, information, assumptions, etc. that may be used in performing this period’s analytical procedures. This information is often contained within software applications and electronic audit <strong>to</strong>ols. Static Information Static information consists of final file documents, such as the financial statements and completed working papers, that will not change and may well be required for reference in future years. Final or static documents must be retained in a format where the information can be retrieved easily in later years. Legacy Software Leaving the information in a format used by a software application can be problematic if the software application is updated with a new file format. The old file may not be capable of being opened unless a copy of the old software application is also maintained. To overcome this problem, many firms are now saving their final file documents in a medium called portable document format (PDF). PDF has been accepted and used by government agencies and accounting firms around the world. The firm’s policies should state that final documents are not <strong>to</strong> be edited. Advantages of Au<strong>to</strong>mation Maintaining audit files in an electronic form enables some administrative functions <strong>to</strong> be au<strong>to</strong>mated, and provides additional flexibility for engagement team members. For example: • Specific working papers can be accessed directly from the index; • Files and documents can be easily shared or reviewed with others in distant locations; • New audit folders and documents can be created, renamed, moved, copied, or deleted from the index; • The detailed index can be collapsed <strong>to</strong> reveal its overall structure, or expanded as needed, making it easier <strong>to</strong> see the big picture and locate key documents; • Cus<strong>to</strong>mized names can be given <strong>to</strong> important documents. This can help other team members <strong>to</strong> interpret the contents of a document from its name; • Review functions can be au<strong>to</strong>mated such as checking all or part of the audit file for exceptions, outstanding review notes, and preparer/reviewer sign-offs;
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 163 and 164: 163 Guide
Page 171 and 172: 171 15. Summary of Other ISA Requir
Page 205 and 206: 205 16. Audit Documentation Chapter
Page 213: 213 Guide
show all

Guide to Using International Standards on Auditing in - IFAC

Create successful ePaper yourself

Delete template?

Save as template?