Guide to Using International Standards on Auditing in - IFAC

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<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
Paragraph #
ISA Objective(s)
700.6 The objectives of the audi<strong>to</strong>r are:
(a) To form an opinion on the financial statements based on an evaluation of the conclusions
drawn from the audit evidence obtained; and
(b) To express clearly that opinion through a written report that also describes the basis for
that opinion.
Exhibit 3.3-6
Back
<strong>to</strong> risk
assessment 2
Reporting
yes
Evaluate the audit
evidence obtained
Is
additional
work
required?
no
Determine what
additional audit work
(if any) is required
New/revised risk fac<strong>to</strong>rs
and audit procedures
Changes in materiality
Communications
on audit findings
Conclusions on audit
procedures performed
Prepare the
audi<strong>to</strong>r’s report
Form an opinion
based on audit
findings
Significant decisions
Signed audit opinion
Notes:
1. Refer <strong>to</strong> ISA 230 for a more complete list of documentation required.
2. Planning (ISA 300) is a continual and iterative process throughout the audit.
The final phase of the audit is <strong>to</strong> assess the audit evidence obtained and determine whether it is sufficient and
appropriate <strong>to</strong> reduce audit risk <strong>to</strong> an acceptably low level.
It is important during this phase of the audit <strong>to</strong> determine:
• Any change in the assessed level of risk;
• Whether conclusions drawn from the work performed are appropriate;
• If any suspicious circumstances have been encountered; and
• That additional risks (not previously identified) have been appropriately assessed and further audit
procedures performed as required.