Immersing in audit

  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/

 The ISA deals with the auditor’s responsibility to issue an appropriate report in circumstances when the auditor concludes that a modification to the auditor’s opinion on the financial statements is necessary. This ISA is effective for audits of financial statements for periods ending on or after December 15, 2016. ISA 705 defines requirements relating to circumstances when a modification to the auditor’s opinion is needed, determining the type of modification to the auditor’s opinion, form and content of the auditor’s report and communication with those charged with governance when the opinion is modified. https://www.iaasb.org/

 ISA 720 is effective for audits of financial statements for periods ending on or after December 15, 2016. The ISA deals with the auditor’s responsibilities relating to other information, whether financial or non-financial information (other than financial statements and the auditor’s report), included in an entity’s annual report. The objective of the auditor is to consider whether there is a material inconsistency between the other information and the financial statements. ISA 720 defines requirements regarding obtaining the other Information, reading, and considering the other information, responding when a material Inconsistency or material misstatements exist, reporting and documentation. https://www.iaasb.org/