ISAs Flashcards
what does ISA 315 state?
identifying and assessing risk of material misstatement through understanding the entity and its environment, including its internal control.
what does ISA 200 state?
auditor should plan and perform audit to reduce risk to an acceptable low level. eg. reduce detection risk by having enough knowledge, expertise & resources
requires auditor to exercise professional judgement in planning and performing an audit.
how can auditors gain understanding of the entity & environment under ISA 315?
- enquiries of mgt
- analytical procedures
- observations and inspection
what does ISA 320 state?
auditors determination of materiality is a matter of professional judgement, and is affected by auditors perception of financial information needs of users of the financial statements
what does paragraph 11 ISA 315 state?
objective of auditor is to identify and assess risks of material misstatement, whether due to fraud or error - thereby providing basis for implementing responses to assessed risks of material misstatement
what does ISA 240 state?
refers to definition of fraud. intentional act by one or more individuals involving the use of deception to obtain an unjust or illegal advantage
what does ISA 500 state?
when wanting to rely on the work of the expert, the auditor must :
- evaluate the competence
- capabilities & objectivity of the expert
- obtain understanding of work done
- evaluate appropriateness of work done as audit evidence
what does ISA 570 state?
under the going concern assumption, an entity is viewed as continuing in business for foreseeable future. directors assess, auditors audit.
what does ISA 700 state?
states that the following elements must be included in an audit report :
- title
- addressee
- introductory paragraph
- mgts responsibility for financial statements
- auditors responsibility
- opinion paragraph
- signature of auditor
- date of auditors report
- auditors address
