ISA 330 – THE AUDITOR`S RESPONSES TO ASSESSED RISK

 ISA 315 deals with the auditor’s responsibility to design and implement responses to the risks of material misstatement identified and assessed by the auditor in accordance with ISA 315  in an audit of financial statements.

The standard defines such requirements as Overall Responses, Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level, Adequacy of Presentation of the Financial Statements, Evaluating the Sufficiency and Appropriateness of Audit Evidence, Documenting of auditor`s response to assessed risk.

Comments

Post a Comment

Popular posts from this blog

What is the management`s expert and how does the auditor use the management`s expert work?

Image
  The preparation of a company’s financial statements may require ability in a field other than accounting or auditing . In such situations the company may employ or engage experts in these fields to obtain the necessary expertise for preparing of the financial statements . Management’s expert is an individual or organization possessing special experience and knowledge in a field other than accounting or auditing, whose work in that field is used by the company to assist in the preparation of the financial statements. The management`s expert expertise may be needed in the following fields: ·       The valuation of complex financial instruments , land and buildings, plant and machinery, jewelry, works of art, antiques, intangible assets , assets acquired, and liabilities assumed in business combinations and assets that may have been impaired. ·         The actuarial calculation of liabilities associated with insuran...
Read more

What is a review of interim financial information and why is it required?

Image
  Interim financial information is financial information that is prepared and presented in accordance with an applicable financial reporting framework and comprises either a complete or a condensed set of financial statements for a period that is shorter than the entity’s financial year. A review is designed to provide limited assurance that the interim financial information is free from material misstatement. Limited assurance engagement is an assurance engagement in which the practitioner reduces engagement risk to a level that is acceptable in the circumstances of the engagement but where that risk is greater than for a reasonable assurance engagement and the practitioner’s conclusion is expressed in a negative form. Review of interim financial information could be required in following situations: ·         Some stock exchanges require listed companies to provide a review of interim financial statements performed by independent auditors. ...
Read more