AAA Technical Articles.docx - AAA Technical Articles 1 Going Concern 2 Data Analytics and the Auditor 3 Auditing in specialised industries 4 IAASB

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AAA Technical Articles 1. Going Concern 2. Data Analytics and the Auditor 3. Auditing in specialised industries 4. IAASB exposure draft – Proposed International Standard on Auditing 540 (Revised) 5. Evaluation of misstatements 6. Responding to non-compliance with laws and regulations 7. Corporate governance and its impact on audit practice 8. Auditing disclosures in financial statements 9. Performance information in the public sector 10. Audit quality – a perpetual current issue 11. Professional scepticism 12. Auditor liability: ‘fair and reasonable’ punishment? 13. Continue to be rest assured 14. Completing the audit 15. Massaging the figures 16. Forensic auditing 1
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AAA Technical Articles 17. Auditors' reports to those charged with governance 18. Group auditing 19. Group audit issues 1) Going concern The Paper P7 examiner describes the additional guidance given for ISA 570, Going Concern The recent global economic crisis, commonly referred to as the credit crunch, has provided many challenges for both the preparers and the auditors of published financial statements. For auditors, ISA 570, Going Concern is a well-established source of guidance, and additional direction has been provided by the IAASB's Practice Alert Audit Considerations in Respect of Going Concern in the Current Economic Environment , issued in January 2009. In the UK, the APB issued the Bulletin Going Concern Issues During the Current Economic Conditions in December 2008. Both of these are examinable documents for the Paper P7 exams in 2010. The auditor's objectives in relation to going concern ISA 570 contains well-established guidance on going concern, including the following objectives for the auditor: to obtain sufficient appropriate audit evidence regarding the appropriateness of management's use of the going concern assumption in the preparation of the financial statements 2
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AAA Technical Articles to conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern, and to determine the implications for the auditor's report. All audits should involve an assessment of the appropriateness of the going concern assumption, and it is obvious to say that the auditor may well have to perform additional procedures when there are heightened risks relating to going concern, caused by difficult economic and market conditions. But going concern should be considered at all stages of the audit, not just in terms of specific procedures. It is important to remember that going concern is not just something considered at a particular stage in the audit cycle, but should be an issue that permeates the whole performance and review of an audit.
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