Immersing in audit

    ISA 805 deals with special considerations in the application of those ISAs to an audit of a single financial statement or of a specific element, account, or item of a financial statement. A single financial statement or the specific element, account or item of a financial statement may be prepared in accordance with a general or special purpose framework. Its core requirements encompass determining the acceptability of the financial reporting framework; planning and performing the audit in accordance with the ISAs relevant to the engagement; obtaining and evaluating written representations from management tailored to the single financial statement or specific element, account or item being audited; obtaining sufficient appropriate audit evidence; evaluating the presentation and disclosures; and forming and reporting an opinion on the single financial statement or specific element, account or item of a financial statement.  

  This ISA deals with special considerations that apply to group audits, in particular those that involve component auditors. The requirements of this ISA include client acceptance and continuance, and establishing the overall group audit strategy and group audit plan. They also include understanding the component auditor; understanding the group, its components and their environments; determining materiality; and responding to assessed risks. Requirements relating to consolidation include evaluating the client’s consolidation process and designing and performing further audit procedures on that process. Other requirements include considering subsequent events, evaluating the sufficiency and appropriateness of audit evidence obtained, and outlining the information to be included in audit documentation.  

  ISA   570 deals with the auditor’s responsibilities in the audit of financial statements relating to going concern and the implications for the auditor’s report.  Its core requirements encompass :       risk assessment procedures and related activities,       evaluation of management’s assessment an entity’s ability to continue as a going concern,       additional audit procedures when events or conditions are identified that may cast significant doubt on the entity’s ability to continue as a going concern,       implications for the auditor’s report and       communication with those charged with governance.

  ISA  710 deals with the auditor’s responsibilities relating to comparative information in an audit of financial statements. Its core requirements encompass audit procedures for comparative information, audit reporting frameworks for corresponding figures and comparative financial statements.

  ISRE 2410 establishes standards and provides guidance on the auditor’s professional responsibilities when the auditor undertakes an engagement to review interim financial information of an audit client, and on the form and content of the report. The ISRE defines the following matters relating to: ·         Objective of an engagement to review interim financial information. ·         The process of agreeing the terms of the engagement. ·         Procedures for a review of interim financial information. ·         Evaluation of Misstatements. ·         Content of management representations. ·         Auditor’s responsibility for accompanying information. ·         Communication with those charged with governance. ·     ...

  ISA deals with the auditor’s responsibility to apply the concept of materiality in planning and performing an audit of financial statements. This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009.  ISA 320 defines the requirements relating to determining materiality and performance materiality when planning the audit, revision of materiality as the audit progresses, and including information about materiality in audit documentation.

  ISA 610 deals with the external auditor’s responsibilities if using the work of internal auditors. This ISA applies if the entity has an internal audit function. ISA 610 defines the requirements regarding: ·         Determining whether, in which areas, and to what extent the work of the internal audit function can be used; ·         Using the work of the internal audit function; ·         Determining whether, in which areas, and to what extent internal auditors can be used to provide direct assistance; ·         Using internal auditors to provide direct assistance; ·         Information that should be included in audit documentation.

  ISA 706 deals with additional communication in the auditor’s report when the auditor considers it necessary to: ·         Draw users’ attention to an important matter or matters presented or disclosed in the financial statements. ·         Draw users’ attention to any matter or matters other than those presented or disclosed in the financial statements that are relevant to users’ understanding of the audit, the auditor’s responsibilities or the auditor’s report. https://www.iaasb.org/