Professional Documents
Culture Documents
AT.1305 - Objective and Conduct of Audit of FS
AT.1305 - Objective and Conduct of Audit of FS
AT.1305 - Objective and Conduct of Audit of FS
• Relevant Standard
• Introduction
1
Relevant Standard
2
Relevant Standard
3
Introduction
4
Introduction
• Effective Date
5
Scope
• objectives
• nature and scope of an audit
6
An Audit of Financial Statements
7
Preparation of the Financial
Statements
• An audit is conducted on the premise that
management and, where appropriate, TCWG have
responsibility:
8
Auditor’s Responsibilities
9
Conduct of an Audit of Financial
Statements
• Auditor shall exercise professional judgment and
maintain professional skepticism throughout the
planning and performance of the audit in:
10
Effective Date
11
Overall Objectives of
the Auditor
12
Overall Objectives of the Auditor
13
Overall Objectives of the Auditor
(Cont’d)
• In all cases when reasonable assurance cannot be
obtained:
• disclaim an opinion; or
• withdraw from the engagement, is legally
permissible.
14
Requirements of the
Standard
15
Requirements of the Standard
• Professional Skepticism
• Professional Judgment
16
Requirements of the Standard
• Professional Skepticism
• Professional Judgment
17
Ethical Requirements Relating to an
Audit of FSs
• Comply with relevant ethical requirements,
including those pertaining to independence, relating
to FSs audit engagements.
18
Requirements of the Standard
• Professional Skepticism
• Professional Judgment
19
Professional Skepticism
20
Application of Professional Skepticism
21
Requirements of the Standard
• Professional Skepticism
• Professional Judgment
22
Professional Judgment
23
Examples of Application of
Professional Judgment in an Audit
• Materiality and audit risk
24
Requirements of the Standard
• Professional Skepticism
• Professional Judgment
25
Audit Evidence
Sufficient Appropriate
Quantity Quality
26
Inverse
FS Level
Inherent
Control
27
Reasonable (not absolute) Assurance
28
Requirements of the Standard
• Professional Skepticism
• Professional Judgment
29
Conduct of an Audit in Accordance
with PSAs
• Comply with all PSAs relevant to the audit
30
Questions?
31
Thank you!!!
32