Immersing in audit

  Obtaining an understanding of the entity’s internal control Obtaining an understanding of the entity’s internal control is one of the steps of performing assurance engagement on the greenhouse gas statements.  Greenhouse gas statement and assurance engagements on greenhouse gas statements (part I)  If an assurance engagement is in the form of a limited assurance , for internal control relevant to emissions quantification and reporting the practitioner shall obtain an understanding through inquiries about: (a) The control environment. (b) The information system, including the related business processes, and communication of emissions reporting roles and responsibilities and significant matters relating to emissions reporting; and (c) The results of the entity’s risk assessment process. If an assurance engagement is in the form of a reasonable assurance , the practitioner shall obtain an understanding of the following components of the entity’s internal control relevant to em

  Greenhouse gases (GHGs) is carbon dioxide (CO2) and any other gases required by the applicable criteria to be included in the GHG statement, such as: methane; nitrous oxide; sulfur hexafluoride; hydrofluorocarbons; perfluorocarbons; and chlorofluorocarbons. Gases other than carbon dioxide are often expressed in terms of carbon dioxide equivalents (CO2 -e.) GHG (Greenhouse gas) statement is a statement setting out constituent elements and quantifying an entity’s GHG emissions for a period. and, where applicable, comparative information and explanatory notes including a summary of significant quantification and reporting policies. As there exist a link  between greenhouse gas (GHG) emissions and climate change, many entities are quantifying their GHG emissions for internal management purposes, and many are also preparing  a GHG statement: ( a) As part of a regulatory disclosure regime. (b) As part of an emissions trading scheme; or (c) To inform investors and others on a voluntar

  Sales comprise a material figure in the statement of profit or loss. Auditors are seeking to obtain evidence about such assertions that relate to sales: · Occurrence —sales that have been recorded or disclosed have occurred and are related to the company. · Completeness —all sales 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 sales have been recorded appropriately, and related disclosures have been appropriately measured and described. · Cutoff —sales have been recorded in the correct accounting period. · Classification —sales have been recorded in the proper accounts. · Presentation —sales are appropriately aggregated or disaggregated and clearly described, and related disclosures are relevant and understandable in the context of the requirements of the applicable financial reporting framework. Accounts receivable i

  Management is responsible for the preparation and presentation of prospective financial information. The auditor may be asked to examine and report on prospective financial information to enhance its credibility for use by third parties or for internal purposes. What is “prospective financial information”? “Prospective financial information” means financial information based on assumptions about events that may occur in the future and possible actions by an entity. Prospective financial information can be in the form of a forecast, a projection, or a combination of both, for example, a one-year forecast plus a five-year projection. Prospective financial information can include financial statements or one or more elements of financial statements and may be prepared: (a) As an internal management tool, for example, to assist in evaluating a possible capital investment; or (b) For distribution to third parties in, for example: ● A prospectus to provide potential investors wi