Module 16 Flashcards

1
Q

Laws and regulations ISA

A

ISA 250A

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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
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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

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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

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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
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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
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7
Q

ISA for management’s expert

A

ISA 500

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