Immersing in audit

 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.

 ISA 560 deals with the auditor’s responsibilities relating to subsequent events in an audit of financial statements. This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009. The standard defines key time periods and auditor`s responsibilities regarding subsequent events, that affect the financial statements. ISA 560 outlines three time periods: Period 1 - Events occurring between the date of the financial statements and the date of the auditor’s report. Period 2 - Facts which become known to the auditor after the date of the auditor’s report but before the date the financial statements are issued. Period 3 - Facts which become known to the auditor after the financial statements have been issued.  

 The ISA deals with the auditor’s responsibilities relating to the work of an individual or organization in a field of expertise other than accounting or auditing when that work is used in obtaining sufficient appropriate audit evidence. This ISA defines requirements regrading determination the need for an auditor’s expert, nature, timing and extent of audit procedures, the competence, capabilities and objectivity of the auditor’s expert, agreement with the auditor’s expert, evaluation the adequacy of the auditor’s expert’s work, reference to the auditor’s expert in the auditor’s report. This ISA is effective for audits of financial statements for periods beginning on or after December 15,  2009.

 ISA 800 is written in the context of a complete set of financial statements prepared in accordance with a special purpose framework. The ISA describes requirements concerning the acceptance of the engagement, the planning and performance of that engagement and forming an opinion and reporting on the financial statements prepared in accordance with special purpose framework.  This ISA does not override the requirements of the other ISA (100–700 series). This ISA is effective for audits of financial statements for periods ending on or after December 15, 2016. https://www.iaasb.org/

The standard is effective for audits of financial statements for periods beginning on or after December 15, 2009 . ISA 580 deals with the auditor’s responsibility to obtain written representations from management and those charged with governance in an audit of financial statements. Written representation is  a written statement by management provided to the auditor to confirm certain matters or to support other audit evidence .  https://www. iaasb.org /

  ISA 705 is effective for audits of financial statements for periods ending on or after December 15, 2016. This ISA determines the types of modification to the auditor’s opinion . ISA 705 also explains how the form and content of the auditor 's report change when the auditor expresses a modified opinion . https://www.iaasb.org/

  ISA 700 is effective for audits of financial statements for periods ending on or after December 15, 2016 ISA 700 deals with the auditor’s responsibility to form an opinion on the financial statements and the form and content of the auditor’s report issued as a result of an audit of financial statements. This ISA applies to an audit of a complete set of general purpose financial statements. ISA 700 gives the definition of unmodified audit opinion . https://www.iaasb.org/

ISA 701 is effective for audits of financial statements for periods ending on or after December 15, 2016. This ISA applies to audits of complete sets of general-purpose financial statements of listed entities and circumstances when the auditor decides to communicate key audit matters in the auditor’s report . This standard also applies when the auditor is required by law or regulation to communicate key audit matters in the auditor’s report. The standard deals with the auditor’s responsibility to communicate key audit matters in the auditor’s report. It is intended to consider both the auditor's judgment regarding what should be reported in the auditor's report and the form and content of such a report. https://www.iaasb.org/

  ISA 550 deals with the auditor’s responsibilities relating to related party relationships and transactions in an audit of financial statements . The objectives of the auditor are to obtain an understanding of related party relationships and transactions to recognize fraud risk factors and conclude, based on the audit evidence obtained, whether the financial statements are affected by those relationships and transactions. This standard requires auditors to perform audit procedures to assess whether relationships, transactions, or balances with related parties are properly accounted for or disclosed in accordance with the requirements of applicable financial reporting principle s.  https://www.iaasb.org/

  ISA 540 deals with the auditor’s responsibilities relating to accounting estimates and related disclosures in an audit of financial statements.  This ISA defines   requirements relating to risk assessment procedures and related activities connected with accounting estimates, identification of the risks of material misstatement, responses to the assessed risks of material misstatement, disclosures related to accounting estimates, indicators of possible management bias and the evaluation of misstatements of accounting estimates and related disclosures. https://www.iaasb.org/

  ISA 530 applies when the auditor has decided to use audit sampling in performing audit procedures. It deals with the auditor’s use of statistical and non-statistical sampling when designing and selecting the audit sample, performing tests of controls and tests of details, and evaluating the results from the sample. The ISA defines the requirements relating to the sample design, size and selection of Items for testing, Performance of   Audit Procedures, investigation the nature and cause of any deviations or misstatements identified, projection of   misstatements and evaluation of the results of audit sampling.

  ISA 520 deals with the auditor’s use of analytical procedures as substantive procedures (“substantive analytical procedures”). It also deals with the auditor’s responsibility to perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion on the financial statements. The ISA defines the requirements relating to substantive analytical procedures, analytical procedures that assist when forming an overall conclusion and investigating results of analytical procedures.

  ISA 510 deals with the auditor’s responsibilities relating to opening balances in an initial audit engagement. In addition to financial statement amounts, opening balances include matters requiring disclosure that existed at the beginning of the period, such as contingencies and commitments. The ISA defines the Audit Procedures relating the opening balances and the process of arriving audit conclusions and reporting regarding the opening balances.

  ISA 505 deals with the auditor’s use of external confirmation procedures to obtain audit evidence as a direct written response to the auditor from a third party (the confirming party), in paper form, or by electronic or other medium. The ISA defines the external confirmation procedures, the auditor action in the case of management’s refusal to allow the auditor to send a confirmation request, possible results of the external conformation procedure and process of evaluation of the evidence obtained. https://www.iaasb.org/

  ISA 501 deals with specific considerations by the auditor in obtaining sufficient appropriate audit evidence in respect to certain aspects of inventory, litigation and claims involving the entity, and segment information in an audit of financial statements. The ISA defines the audit procedures that should be performed in obtaining audit evidence regarding: (a) Existence and condition of inventory.  (b) Completeness of litigation and claims involving the entity; and (c) Presentation and disclosure of segment information in accordance with the applicable financial reporting framework. https://www.iaasb.org/

The ISA explains what constitutes audit evidence in an audit of financial statements and deals with the auditor’s responsibility to design and perform audit procedures to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor’s opinion. ISA 500 deals with objective and requirements relating to the audit evidence. Such requirements include: ·         Information to Be Used as Audit Evidence. ·         Means of selecting items for testing g to Obtain Audit Evidence. ·         Procedures in relation to inconsistency in, or doubts over reliability of, audit evidence.

ISA 450 deals with objectives and requirements relating to the evaluation the effect of identified misstatements on the audit and of uncorrected misstatements on the financial statements. These requirements include: ·         Accumulation of identified misstatements. ·         Consideration of identified misstatements as the audit progresses. ·         Communication and correction of misstatements. ·         Evaluating the effect of uncorrected misstatements. ·         Written representations from management or those charged with governance. ·         Documentation of the process of evaluation of misstatements.  

 ISA 402 deals with the user auditor’s responsibility to obtain sufficient appropriate audit evidence when a user entity uses the services of one or more service organizations. It defines the objectives of the user auditor and the requirements relating to audit of the entity using a service organization. These requirements comprise: ·         Obtaining an Understanding of the Services Provided by a Service Organization, Including Internal Control. ·         Responding to the Assessed Risks of Material Misstatement. ·         Type 1 and Type 2 Reports that Exclude the Services of a Subservice Organization. ·         Fraud, Non-Compliance with Laws and Regulations and Uncorrected Misstatements in Relation to Activities at the Service Organization. ·         Reporting by the User Auditor.

 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.

  The ISA 315 deals with the auditor’s responsibility to identify and assess the risks of material misstatement in the financial statements using the   understanding the company and its environment, including the company’s internal control.