If the assurance practitioner is the auditor of the entitys annual financial

If the assurance practitioner is the auditor of the

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If the assurance practitioner is the auditor of the entity’s annual financial statements, the assurance practitioner must apply ISRE 2410. It should be noted that ISRE 2400 (Revised) and ISRE 2410 are intended to be a stand-alone Standards. This means that a practitioner should be able to apply each of these review Standards in isolation from other pronouncements (except where specifically directed to another pronouncement within the text of each of these ISREs). This differs from the ISAs, which are intended to be applied to an audit engagement as a suite of Standards. Reviews performed by the assurance practitioner who is not the auditor ISRE 2400 (Revised) assumes that an assurance practitioner who is not the entity’s auditor initially does not have the same level of knowledge of the entity as the auditor. Conducting review procedures Some key aspects of ISRE 2400 (Revised) with respect to designing and performing review procedures are set out below. Enquiries ISRE 2400 (Revised) requires the practitioner to make enquiries of management and others within the entity, to obtain specific information, including the following: How management makes significant accounting estimates. Related parties and related party transactions. Significant, unusual or complex transactions, events or matters that have affected or may affect the entity’s financial statements. Significant changes in business activities or to terms of contracts that materially affect the entity’s financial statements, including finance and debt contracts or covenants. Significant journal entries or adjustments and significant transactions occurring or recognised near the end of the reporting period. Existence of any actual, suspected or alleged fraud or illegal acts affecting the entity and non-compliance with the provisions of laws and regulations. Whether management has identified and addressed subsequent events. The basis of management’s assessment of the entity’s ability to continue as a going concern and whether there are events or conditions that appear to cast doubt on the entity’s ability to continue as a going concern. Material commitments, contractual obligations or contingencies. Material non-monetary transactions. Analytical procedures ISRE 2400 (Revised) requires the practitioner to consider whether the data from the entity’s accounting system is adequate for the purpose of analytical procedures. Performing analytical procedures can assist the practitioner to: identify areas where material misstatements are likely to arise in the financial statements identify inconsistencies or variances from expected trends, values or norms in the financial statements corroborate evidence in relation to other enquiry or analytical procedures already performed.
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Chartered Accountants Program Audit & Assurance Page 11-15 Unit 11 – Core content Other review procedures While the nature, extent and timing of procedures performed are dependent on the practitioner
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