Sa 500

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 10

Magic-

DATE

1SASASo0 AODI D NCC


PAGE

ENITlON' INFORMATI ON Usto B1 AODI TOR

OR ARRNING AT CoNCLUST OA.


N LOHICH COPINION IS BAsED
INCLUDES
AUDITENIDENCE INFORMATLON
CONTANEDIN THER TNF
KECoRD OF ENIRIES
SUPPORTING RECORS INVolCES -MINUTES
CoNTRACTS OR
GENERAL, SUBSIDI ART EDGRS, -NANUALS OF
OHER ADJUSTMENNTS INTERNJAL
NE FS CoN TRoLS
NOT REFLECTED IN JOURNAU
RECORDS ETC
SUCH AS 0RK SHEETS
RECoNCILTAT ToNS AJD DISCLOsURES

INFORMATION T0 BeUsED As_AuDIT EVIDENCE


ORK OF MGT
EXPER
PROVIDED BY
AVD TIOR SHAL NQT
To THE EXTENT
NcESSARY, ALVTETE EVALUTE
REGARDTG SIGNIFICANCE WHE THER INFO Is
EXPERT SORk, RELTA BE B
-EVA LUA TE CoM PETENCE,
OBTAIN EVIDENCE
CAPABI 1ITIES, OBI ECTINMTY Of Ex PERT ABOUT ACCURACY
Magic
DATE

PAGE

OBTATN
ONDERCTANDNG OF H AND CoMPLE JENESS
oF INfo
ORK
- EVALUATING TNfO
OF LO0RK
APPROPRIAT ENES AND
IS SOff IClENT
fRECISE AND ETAL
DETAILED

INCONSISTENCY IN OK DOUBI CNEk_KELIABILEY


OF EVIDENCE

IA

AVDIT EVLDENCE
HAS DOURTH
OBTAINED
SOURCE T OeR RELTABIUT
FROM ONE
INCONSISTENT TH CF EVIDESCE
OBTAINTED FKoM OTHER

DETeR MINE WHAT MOD/EICATION OR


OR
ADDITIONS To AubiT fROCEDURES

TO RE SOLNE THE DObBTS


Megie-
DAE

PAG

AD ATROFIATC AUDITiDEME
SUITL lN
AUD TDR TeTORM AUDIT PRoCCDWRE
r7OPIN) ON

To ORTAIN sANC To SupPORT


REPORT
TROM INTO OBIA/ND
FOTHE SoURCEs, PReitws AuDIT
AUDIT
INSIDE AND OJTSIDE CTI T
MGT E PERT

MGT ASSERTIONS
ENEN ABSENGE OF INPO
ALSO CoNSTITUTE AS AuDIT
EVIDENCE

SUFPICaENCT
-MEASURE OEQUANTLT CE AUDT EVIDENCE
AFFECTED EY
AUDITOR'S AssEsS MENT RMM QOALITY OF
EUIDENCE
RM AE
QUALITY AE
RM AE
QUALITY tAE

FACTORS AFFCCTING AUDTOR JUDGEMENT


AS SUFF(CENC{ OF AUDIT EVIDENCE

MATERALYM RMM Si2e 4 chaake


ePopttahen-
A E JMateria AE RMM A E oPULATION
AE MATERIAL TAE 1 RMM SMALL AND HoMD
IS SIGNIFICANCE AE: JbPULATION
OF TRANSACTI ON, LARCE AND
ACcoUNT AND HE TA0.
DiscLoOSRE
Magic-
DATE

PAGE

APPROPRIATE NESS
MEASURE OF QUALITY OF AUDIT EVIDENCES
THAT IS IT

KELEVANCE REUARBJLTY

DEALS LITH LOqICAL INFUENCED BY ITS

CoNNECTlON, BEARING SOURCE NATURE CRCOMSTA-


-CESS
UPoN PURPOSE OF AP
UNDER OHICHIT IS
OBTAINED
A SET OF YROCEDURE
MAY BE RELEVANT FOLLouOIN G GENERALISI NG

FoR ONE AND NoT ABOUT REUABILI T OF SAAE


FROM INDEPEND -
OTHER OBTAINED

OUTSIDE ENTITY.
SoURCE
E eRSTATED BLS ENT
EVIDENEE
PAYARLE CAN BE INCREAS ED WHEN
TESTED By CHECKING
O8TAINED INTERNALY AND
RECORDED ACcoUNTS I C IS EFFECTINE
PAYABLE BUT OBTAINED DIRECTN BY
ONDERSTATED CAN'T AUDITOR
BE EVALUAT ED 8 ISIN DOCUMENTARY
FoRM,OHETHER PARER,
THIS ELECTRONIC
FoR THLS INVOlCES,

SUPPLIER'S STATEMENT A IF ORIGINAL DocUMENTS


PRONIDED THAN PHOTOCoPIES
IS To BE CHECKED
FACSIM|LIES OR OTER SSE
Magic-
DATI
PACiE
NPES C AutT EVIDENCES
TDEPENNDI NG DEPENDfNG EPONH
OPON NATURE SOURCE
vISUAL ORALL DoCUMENTAR NTERNAL TERNAL
INVENTORy NQURY LORIT TEN oITHIN UTSIDEE
VERIACATlON KEPRESENTATION, ORG EStT
ETERNAL CoNAI RMAT) ON
AuUDITROLEDUREToTo OBTAINAUDITENIDENtE
SA3S SA 33)
RiSk AssEsS.MENT FURTHER AUDT
PROCEURES PROCEDRE
RAP)
Ovex FS
TEST OF CoNSTROLS SW TANTTVE
PRocEDURES
TEsT OE DETAIL|
S6BSANTIHE
TEST OF TRANSACT)ON TEST OP BALANCES ANANTCAL-
IE NOOCHING IE . VERIFICA TION PROCEdURE
EST OF CONTROLS.
AuDIT ROCEQURES
DESI6NED ToEVALUATE
THE CPERATI NG _IN PREVENTIN
EFFECTINENESS DETECTTNG ANb
OF CONTRDLS CORRECTING RMM
TOSIN EVDENCE
OHEN PERfORM1 EATEN OF TET pBTANED INPREICISs
AvDiTo Assess TRo AU
DIT GorSIDER
-MENT| o RMM MATTER$ T E
EFFECTIVENESS OF
OTHER LEMEJTS
INWDEs AN GonSTDERE D
E E P T s o N THAH| - REENC OF RISK ARISING FRM CHARAdTERIS|TIC
PGRFORMANCE oF GoNTRoL CoNTRLOL HETHER MANVAL, R
CoNTRbLs ARE AUTOM ATED
OPERATINS OVER CoNTROLS TRO
E EFfecTINEBESSF4ENERAL TT Co
FFECTINEUN RATE OF EIATIONS EFF¢CTNENEGs O CNTRBL AND
KELEVANCE AD TTS |APLT CATION
SOBS TANTNE RE LA BIUT} OF SAAE + ACk OFCHANGE IN CaNTRoLs
PRE DURE ALoNE
CANNOT PROIDE AupIT EVIDEN¢E RM/M
SUFFIlET|AAE BTAINED FROM SpEdIEIC NQbIRES HEN
CTHeR PRoDURE
IEIATIONS FROM CoNNTROL
NA TTURE OF Toe TECTE D
TIMING OT PRONIDE
PeRFPRM APT donCubDE TEsT OF| CoNTROL
HoW co TROLS APPLIED To SAAE To REL ON
CoNTRoLS.
AUDITOg gHALL
-CoSISTENCI ITH OHI GH TeST CONTRd L -ADDIT|lONALTEST OF
APPLLED CopTRdLs ARENECESSAR
BY HoM A MEANS FoR PARTICULAR TIME
APPLLED oR THRoudnTDuT POTENTIAL RMM NeED
( DETERM|NE IND IRECT PERIDD
coTRDLS, TË sp OB tAN POR HCH AUD)TOR To BeADDESseD
SAAE TN TENDS To REN
layie -

DATE

PAGE

SOBSTANIN RCCORC
AUDIT PRoe bIRCS
DESIGNED To DETECT MATERIL AT ASERTLOA
MISSTATMENT LEVEL

Z
}

HHA
oll

2
22
L

9
ATORE Risk AMT PAYABLE TERMC SBSTATINNE PROdEOURE
AND AssERTIOnN s AND BALANCE$ RESPDNSINE To SIGNIFNCANT|
RELEVAT To DESIGN 2 PRovIESAAE FFOR R1K
otTEsT oF DETAILS SomeAsERTIONS BUT INED ASdESED
AUDI TOR DETERM
M A T E R I A L M S S T ATEMENT
ExtENT OF NoT FoR ALL R14K DF
I4 6NIFCANT RISK
SO BsTATINE PRocErURE TRov D Less
TCREAses DHEN RELEVAT AUDIT SUesTANTIvE PRoE DURE
RESULT oF TEST OF PERFORfM
CoNTROs ARE EIDENcEs RELATED IN RESPONSE To RISR
Tb REov¢RABILI Ty
NATIs FpCTO oF ACouNTRECENABLE SURLTANT NEPROCEDN
RE
HeRE
-OTHER MAT TERS 3E..PROLEDURE SHALLINLUDE TEST OF
ARE ALSO PERFoRMED FbR ON DETAs
RELENANT PURPOsE SAAEFRoM EXTERNAL PARTY
MAY PRoVIDE iDENCE
B AUDITOR IS
fo PTHER DIRECT
NoLEDGEOF CoNFtRMATIONREQESr RE@UIRED To
To RECPONDMATERAL
CpNFIRMING PARTY SIGNI PCANTRSK
ARoVT SPBTECT MATTe Foe BANK BAL CAN T PRAUD
MISS TAT¢ MENT, DUE
LEAD To Koou OTH4R
ADftLINGNELS of TN fo RELATE To RA K
ORERROR
PARTY T RESPoND
ACTORC TO CcS|DER
CIRTECTIVITY| BEFPRE RfRMIN G|
CoNFIRM)NPART TERAL CoNPIKMATON
ASAUDT TPRocEDRE
Magic
DATE

PACGl.

USE OF ASSERTIONS By AUDTOR To uNGIDER


DEPERENT TrES OF fo TCTAL. MISSIBTEMENIT
FALL INTO ollotoLNNGIHR CATEGORJES
CLASS OF ACcoUNT PRECENTATIONJ
TRANSACTIONS BA LANcEC AND DISCLOSORE

OCCORRENCE
IExsTENCE OCcURReNOCE
TRANSACTIONSS ASSETS AND RIGHTE A D
RECORDED HAvE LTABILITIES ANDD OBLICATION
OccURRED AnND PRETAIN EQUITY DISCLOsE EVENNTS
To THE ENTITY, 2 RIGHT AND TRANSTIONS
OBLIGAT)ON HAVE OCCURED
2COMFPLETENESS
ALL TRANSACiONS RIGHTS To AND PRETAIN
SHOULD HAVE BEEN ASSETS AOD TO OR4
RECORDED TIABILTTIES ARE 2 CoMPLETENEE
OBtHGATIONN-
ACCURACY PRoVIDED
TRACATIONS RECORIIED 2 CoMPLETE NESSS CoMPLETE
APPROPRIATEL ALL ASETS, EQITY DISCLOCORE
CUT OFP AND L1ABJUT IES OF ALL

RECoRDED N CoRRECIRELORDED 3CLASSIF|CATIoN


ACCOUNTING PRIOD Y.uALUATION AND AND
UNDERSIAN-
CCLASSFICAToN ALLOCATION DABILITY
RECORDED N ASSE T, LIABIU TIEeS NPO PROPERLY
PROPER3 ACcoUNT AND EQUTY RELORDED PRESENTED
AT APPRURATE iC DSCOsED
PrND AMT - u AccuRA CY AND
VALU TIONS
TPO DISCLOED
PAIRS AT
APPROPRIA TE
AMT
CoMPARISON Of fiNANCIA AND NoN FINANCLAL
INFO To STUDY PosCIRLE REtATIoni
AMONG THEM

tSOME_CRseCUATIONls O0AUNT_uinenE MAL


SOME
B CHeP TC CCDINNG CPON ICiIGOLS To Re

AbopTED OR OBIAINGING THCM-

NOTHING ISMYSTEKloUS,ABoUT THEN LTS JUST


STRAIGH1RIRD F o
2 EUDENE VARIES N KeuBILITY
SoME ARE DIFFICULT To OBTAIN THAN
OTHERS
3 AND
MuST BE REcoGNISED To Be PexSOASINE
NOT CoNCLUSINE
S HuDITOKs AssuRANCE INCREASES OHEN EIDEntE
RoM fFeRENT URCES IS CoNSjs 1ENT1
IN SElECTING ROCEDUKREC MUST KECoGLZE
OSSiBILu THAT TNFO MAY BE MATERIALY
pMLsSTATED
RELATIONSHIP CoSTCoST AND USEFULNess of_
OBTA INED
I f AUDITOR HAVE REASONARLE DOURT RESoLNe
THROUG OBTAINING sAAE
AUDIT PROCEDwRES
TINSPECTIONG FETERNAL REPERFoRMANEtCAP
CoNfA RMATUON. EXECUTION Of
OF RECKDS oR EVIDENCE CSTAINED PROCESS fERfoR- 4
DOUMENTS, OK MED B
DIkeCT RESPONSC
-OE ASESS
RM3 PMTY eNTITY
OB5ERVATION KE CALCULAT O
LODKING AT PROCESS CHECKNG MATHEMATICAL TNUIRL
dEING ECORMED ACCURAY OF SeE KING
RECOKDS. INO KON
B oOTHEKS KrdontEaARt
PELSoN INSIDE
oR OUTSDE ENTTTY

You might also like