the plans are feasible in the circumstances para 16b If mgt uses cash flow

The plans are feasible in the circumstances para 16b

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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
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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)
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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.
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