SOCIAL & ENVIRONMENTAL ISSUES

IMPACT ON FS (and Audit)

ASSET IMPAIRMENT PROVISIONS ETC

Ask M - Any changes in the assets? Or Strategy? How potential contingencies identi ed?

Old impairments - old assumptions still appropriate? Penalties etc for Environ Damage?

Any site clean ups needed?

Assumptions behind estimates?

Everything disclosed correctly? (Esp if GC issue)

fi
CLIENT OUTSOURCES A
FUNCTION
Audit Considerations Planning

Understand Nature of
Service Review Contract
Review Reports by Service
Provider
Document the system
Their Signi cance
Obtain Report Type 1 or 2
Effect on Internal Controls
Visit Service Provider
Materiality
Use other auditor
Activity interaction between them
Contract between them Staff to
Timing? Time?
do this?
fi
CLIENT OUTSOURCES A FUNCTION
Audit Considerations Planning

At the
request of the
Report Type 1 service Report Type 2
provider

Description, Design &

Description & Design of IC Effectiveness of IC

Prepared by Service Provider Prepared by Service Provider

Includes Control Objectives Reasonable Assurance from

Service Auditor
(on the description, design and suitableness for the objectives &
Reasonable Assurance from effectiveness)

Service Auditor
(on the description, design and suitableness for the objectives) Description of their tests of
controls (& results)