The plans are feasible in the circumstances para 16b

• the plans are ‘feasible in the circumstances’ (para. 16(b)).
• If mgt uses cash flow forecast, evaluate the reliability of the data and the level
of support for underlying assumptions (para. 16(c)).
• consider any additional facts or information (para. 16(d)).
• obtain written representations (para. 16(e)).
If management has performed an
assessment:
• Discuss with management
• Determine if management has
identified events/conditions that
cast doubt
• If conditions identified then discuss
management’s plans to address
them. (para 10(a))
• Evaluate management’s assessment
(para. 12)
If material uncertainty exists, consider implications for auditor’s opinion

Quick Reference Guide 14.1
Analytical Procedures – ISA 520
Audit & Assurance Chartered Accountants Program
Page 1 of 1 Quick reference guide 14.1 – Analytical Procedures – ISA 520
Substantive Analytical Procedures when responding to risks
(para. 5)
Often best for large volumes of transactions that are predictable over time.
Consider:
• Assessed risk of material misstatement and tests of details performed
• Reliability of data, including:
– Source (e.g. external data v internal)
– Comparability
– Nature & relevance (e.g. budgets being set as targets versus
realistic expectations)
– Controls over its preparation (i.e. that ensure it is complete,
accurate and valid)
• Develop an expectation of results
• Determine if any difference is acceptable without further investigation
AUDITOR ELECTS TO PERFORM
Analytical Procedures when forming an
overall conclusion
(para. 6)
• Perform near end of the audit
• Assist in concluding whether the financial
statements are consistent with the auditor’s
understanding of the entity
– Intended to corroborate conclusions formed
during the audit of individual components
Note: procedures might be similar to those used as
risk assessment procedures.
AUDITOR MUST PERFORM
Investigate results (para. 7)
IF identify fluctuations or relationships that are inconsistent with:
• other information OR
• differ from expected values by a significant amount, THEN
– Enquire of management AND obtain evidence to support management’s responses AND
– Perform other procedures as necessary (e.g. when management can’t explain or evidence obtained to support is not adequate)

Quick Reference Guide 14.2
Related Parties – ISA 550
Audit & Assurance Chartered Accountants Program
Page 1 of 1 Quick reference guide 14.2 – Related Parties – ISA 550
Risk assessment stage
MUST perform procedures to identify the risk of
material misstatement from related parties (para. 11)
• Gain understanding of related party relationships
& transactions by:
– Enquiry of management (paras 13 & 14)
– Performing procedures around
management’s controls in respect of related
parties (para. 14)
• Consider risk of fraud in relation to related parties
(para 19)
Risk response stage
• Be alert for related party information during the
audit (paras. 15 & 16)
• Transactions outside the normal course of
business
– Be aware that could involve related
parties (para. 16)
– If identify perform procedures per para. 23
• Previously unidentified or undisclosed related
party / trans.