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Evidence To support the report
Evidence                        SOURCESAudit        Previous         Quality      In and outProcedures     Audits         ...
TYPES         Inspect       Observe           Confirm                                  AnalyticalRecalculate    Reperform  ...
ASSERTIONS - ISA 500NOT INDIVIDUALLY ASSESSED - OFTEN SIMULTANEOUSLY
ASSERTIONS - ISA 500OCCURCOMPLETE            TransactionsACCURATECLASSIFICATION       in the year NOT INDIVIDUALLY ASSESSE...
ASSERTIONS - ISA 500                  OCCUR                  COMPLETE              Transactions                  ACCURATE ...
ASSERTIONS - ISA 500                  OCCUR                  COMPLETE              Transactions                  ACCURATE ...
Management             Representation LetterReasonable &                          Competent Consistent                    ...
If Management refuses..Limitation on scope  Qualified or disclaimer of Opinion
Using the work of an       EXPERT UNDERSTAND THEIR WORKEVALUATE APPROPRIATENESS
Using the work of an                                  EXPERT Understand their field                 Capable?Agree engagemen...
Using the work of an       EXPERT UNDERSTAND THEIR WORKEVALUATE APPROPRIATENESS
Using the work of an                                EXPERT                                   not referred to              ...
RELATED PARTIES
RELATED PARTIESCONTROLOWNER
RELATED PARTIESCONTROLOWNERRELATEDOWNERS DaughterCommon Control
RELATED PARTIESCONTROL                             SIGNIF. INFLUENCEOWNER                                          DIRECTO...
AUDIT PROCEDURES                  ISA 550            PRIOR YEAR WORKING PAPERS      ENTITY PROCEDURES FOR IDENTIFYING RP’S...
Requirements of ISA 550Risk of failure to disclose RPs and their transactions
Requirements of ISA 550                           Risk of failure to disclose RPs and their transactions          1 Consid...
Requirements of ISA 550                           Risk of failure to disclose RPs and their transactions          1       ...
Requirements of ISA 550                           Risk of failure to disclose RPs and their transactions          1       ...
Related PartyAuditor Response                                                      BIG RP DEALINGS  Find new RP’s?        ...
Related PartyAuditor Response                                                      BIG RP DEALINGS  Find new RP’s?        ...
Related PartyAuditor Response                                                      BIG RP DEALINGS  Find new RP’s?        ...
Relying on Internal Auditors
Relying on Internal Auditors        Evaluate IA               1        Appropriate work?
Relying on Internal Auditors        Evaluate IA               1                Objectivity                                ...
Relying on Internal Auditors        Evaluate IA               1                    Objectivity                            ...
Relying on Internal Auditors                    Evaluate IA                           1                    Objectivity    ...
Relying on Internal Auditors                        Evaluate IA                               1                    Objecti...
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P7 Audit evidence

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  • Transcript of "P7 Audit evidence"

    1. 1. Evidence To support the report
    2. 2. Evidence SOURCESAudit Previous Quality In and outProcedures Audits Procedures of company
    3. 3. TYPES Inspect Observe Confirm AnalyticalRecalculate Reperform Procedures INQUIRY ALONE IS NOT ENOUGH
    4. 4. ASSERTIONS - ISA 500NOT INDIVIDUALLY ASSESSED - OFTEN SIMULTANEOUSLY
    5. 5. ASSERTIONS - ISA 500OCCURCOMPLETE TransactionsACCURATECLASSIFICATION in the year NOT INDIVIDUALLY ASSESSED - OFTEN SIMULTANEOUSLY
    6. 6. ASSERTIONS - ISA 500 OCCUR COMPLETE Transactions ACCURATE CLASSIFICATION in the yearEXISTRIGHTS & OBLIGATIONS Y/ECOMPLETEVALUATION & ALLOCATION Balances NOT INDIVIDUALLY ASSESSED - OFTEN SIMULTANEOUSLY
    7. 7. ASSERTIONS - ISA 500 OCCUR COMPLETE Transactions ACCURATE CLASSIFICATION in the yearEXISTRIGHTS & OBLIGATIONS Y/ECOMPLETEVALUATION & ALLOCATION Balances OCCUR COMPLETE Disclosure UNDERSTANDABLE ACCURATE NOT INDIVIDUALLY ASSESSED - OFTEN SIMULTANEOUSLY
    8. 8. Management Representation LetterReasonable & Competent Consistent Individual? WHEN SUFFICIENT EVIDENCE CAN’T REASONABLY EXIST
    9. 9. If Management refuses..Limitation on scope Qualified or disclaimer of Opinion
    10. 10. Using the work of an EXPERT UNDERSTAND THEIR WORKEVALUATE APPROPRIATENESS
    11. 11. Using the work of an EXPERT Understand their field Capable?Agree engagement terms Objective?Reasonable Conclusions Cost/benefit?Reasonable AssumptionsRelevance of source data UNDERSTAND THEIR WORK EVALUATE APPROPRIATENESS
    12. 12. Using the work of an EXPERT UNDERSTAND THEIR WORKEVALUATE APPROPRIATENESS
    13. 13. Using the work of an EXPERT not referred to in audit reportSame as any other evidence UNDERSTAND THEIR WORK EVALUATE APPROPRIATENESS
    14. 14. RELATED PARTIES
    15. 15. RELATED PARTIESCONTROLOWNER
    16. 16. RELATED PARTIESCONTROLOWNERRELATEDOWNERS DaughterCommon Control
    17. 17. RELATED PARTIESCONTROL SIGNIF. INFLUENCEOWNER DIRECTORRELATEDOWNERS DaughterCommon Control
    18. 18. AUDIT PROCEDURES ISA 550 PRIOR YEAR WORKING PAPERS ENTITY PROCEDURES FOR IDENTIFYING RP’S SHAREHOLDER RECORDS & MEETINGS INCOME TAX RETURNS INDICATORS ABNORMAL TERMS NO BUSINESS LOGIC SUBSTANCE DIFFERENT TO FORM NON-ROUTINE HIGH VOLUMES WITH SINGLE PERSONTHE POSSIBILITY OF UNDISCLOSED RELATED PARTIES
    19. 19. Requirements of ISA 550Risk of failure to disclose RPs and their transactions
    20. 20. Requirements of ISA 550 Risk of failure to disclose RPs and their transactions 1 Consider Riskof material misstatement
    21. 21. Requirements of ISA 550 Risk of failure to disclose RPs and their transactions 1 2 Consider Risk Enquire ofof material misstatement Management
    22. 22. Requirements of ISA 550 Risk of failure to disclose RPs and their transactions 1 2 3 Consider Risk Enquire of Understandof material misstatement Management Controls
    23. 23. Related PartyAuditor Response BIG RP DEALINGS Find new RP’s? OUTSIDE OF NORMAL BUSINESSGET MANAGEMENT TO IDENTIFY ALL TRANSACTIONSSEE WHY CONTROLS FAILEDAPPROPRIATE SUBSTANTIVE TESTSREAPPRAISE RISK FOR FRAUD PURPOSES?INTENTIONAL? EFFECT ON AUDIT CONTRACTS CONSISTENT WITH MANAGEMENT EXPLANATIONS? TRANSACTIONS AUTHORISED?
    24. 24. Related PartyAuditor Response BIG RP DEALINGS Find new RP’s? OUTSIDE OF NORMAL BUSINESSGET MANAGEMENT TO IDENTIFY ALL TRANSACTIONSSEE WHY CONTROLS FAILEDAPPROPRIATE SUBSTANTIVE TESTSREAPPRAISE RISK FOR FRAUD PURPOSES?INTENTIONAL? EFFECT ON AUDIT CONTRACTS CONSISTENT WITH MANAGEMENT EXPLANATIONS? TRANSACTIONS AUTHORISED?
    25. 25. Related PartyAuditor Response BIG RP DEALINGS Find new RP’s? OUTSIDE OF NORMAL BUSINESSGET MANAGEMENT TO IDENTIFY ALL TRANSACTIONSSEE WHY CONTROLS FAILEDAPPROPRIATE SUBSTANTIVE TESTSREAPPRAISE RISK FOR FRAUD PURPOSES?INTENTIONAL? EFFECT ON AUDIT CONTRACTS CONSISTENT WITH MANAGEMENT EXPLANATIONS? TRANSACTIONS AUTHORISED?
    26. 26. Relying on Internal Auditors
    27. 27. Relying on Internal Auditors Evaluate IA 1 Appropriate work?
    28. 28. Relying on Internal Auditors Evaluate IA 1 Objectivity Operational Appropriate work? Independence 2
    29. 29. Relying on Internal Auditors Evaluate IA 1 Objectivity Operational Appropriate work? Independence 2 Technical Competence & Due care 3
    30. 30. Relying on Internal Auditors Evaluate IA 1 Objectivity Operational Appropriate work? Independence 2 TechnicalEffective CompetenceCommunication & Due care 4 3
    31. 31. Relying on Internal Auditors Evaluate IA 1 ObjectivityEvaluate Operationaleach specific Independence Appropriate work? work 5 2 Technical Effective Competence Communication & Due care 4 3
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