Читать книгу Wiley Practitioner's Guide to GAAS 2020 - Joanne M. Flood - Страница 198

The following examples illustrate significant factors, preliminary engagement activities, and knowledge gained on other engagements:

 The determination of materiality, in accordance with AU-C Section 320, Materiality in Planning and Performing an Audit, and, when applicable, the following:The determination of materiality for components and communication thereof to component auditors in accordance with AU-C Section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors)The preliminary identification of significant components and material classes of transactions, account balances, and disclosures

 Preliminary identification of areas in which there may be a higher risk of material misstatement

 The effect of the assessed risk of material misstatement at the overall financial statement level on direction, supervision, and review

 The manner in which the auditor emphasizes to engagement team members the need to maintain a questioning mind and exercise professional skepticism in gathering and evaluating audit evidence

 Results of previous audits that involved evaluating the operating effectiveness of internal control, including the nature of identified deficiencies and action taken to address them

 The discussion of matters that may affect the audit with firm personnel responsible for performing other services to the entity

 Evidence of management’s commitment to the design, implementation, and maintenance of sound internal control, including evidence of appropriate documentation of such internal control

 Volume of transactions, which may determine whether it is more efficient for the auditor to rely on internal control

 Importance attached to internal control throughout the entity to the successful operation of the business

 Significant business developments affecting the entity, including changes in IT and business processes; changes in key management; and acquisitions, mergers, and divestments

 Significant industry developments, such as changes in industry regulations and new reporting requirements

 Significant changes in the financial reporting framework, such as changes in accounting standards

 Other significant relevant developments, such as changes in the legal environment affecting the entity