Module 16 Flashcards
1
Q
Laws and regulations ISA
A
ISA 250A
2
Q
Ways auditor can obtain understanding of legal and regulatory framework (3)
A
- Discussions with management
- Enquiries with head of legal/ general counsel
- Reading other information in annual report
3
Q
Auditor responsibility over entity’s policies relating to compliance with laws and regulations, ethical behaviour and whistleblowing
A
Must assess the design and implementation of controls
4
Q
Where the controls over the identification of related-party transactions and balances are expected to be effective, auditor may (2)
A
- Test whether controls are operating effectively
- Perform substantive analytical review of the transactions and balances
5
Q
ISA 550 (related parties) requires auditor to (3)
A
- Obtain written representations that management have disclosed and accounted for all relevant related party relationships and transactions
- To communicate with TCWG any significant matters in relation to related parties
- To document the names of identified related parties and the nature of related party relationships
6
Q
Overall RoMM relating to estimates will include one or more of the following (3)
A
- Obtaining evidence from events occurring up to date of auditors report
- Testing how management made accounting estimate
- Developing the auditor’s point estimate or auditor’s range of estimates
7
Q
ISA for management’s expert
A
ISA 500