ISA 265 – COMMUNICATING DEFICIENCES IN INTERNAL CONTROL TO THOSE CHARGED WITH GOVERNANCE

 An auditor obtains an understanding of internal control relevant to the audit when identifying and assessing the risks of material misstatement. In making those risk assessments the auditor may identify deficiencies in internal control. Also, deficiencies in internal control may be detected by an auditor at any other stage of the audit.

ISA 265 deals with the auditor’s responsibility to communicate appropriately to those charged with governance and management deficiencies in internal control1 that the auditor has identified in an audit of financial statements

Comments

Post a Comment

Popular posts from this blog

Why do auditors use assertions?

Image
  Assertions are representations by management that are embodied in the financial statements and used by the auditor to consider the different types of potential misstatements that may occur. Assertions may fall into the following categories: Assertions about classes of transactions and events, and related disclosures, for the period under audit : ·         Occurrence —transactions and events that have been recorded or disclosed have occurred, and such transactions and events are related to the company. ·         Completeness —all transactions and events that should have been recorded have been recorded, and all related disclosures that should have been included in the financial statements have been included.   ·         Accuracy —amounts and other data relating to recorded transactions and events have been recorded appropriately, and related disclosures have been app...
Read more

What is the new International Standard on Auditing for Audits of Financial Statements of Less Complex Entities?

Image
  The International auditing and assurance standards board designed “The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities” which is effective for audits of financial statements of less complex entities for periods Beginning on or after December 15, 2025. The standard is based on the International Standards on Auditing (ISA) and would follow a simplified approach based on risk assessment. The standard will enable auditors to obtain reasonable assurance that financial statements are free from material misstatements, and in an independent audit`s report will be pointed out that the audit is conducted in accordance with the ISA for LCE. The ISA for LCE has the following limitations for using: 1.       Specific classes of entities for which the use of the ISA for LCE is prohibited (described below). 2.       Qualitative characteristics that describe an LCE. Qualitative characteristics rel...
Read more