ISA 210 - Agreeing the terms of audit engagements

Objective of ISA 210
1. To accept or continue an audit engagement only when the basis upon which it is to be performed has been agreed through:-
  1. Establishing whether the PRECONDITIONS FOR AN AUDIT are present
    1. The auditor shall determine whether the financial reporting framework to be applied in the preparation of the financial statements is acceptable
      1. Ensure that management understand their RESPONSIBILITIES
        Preparation of the financial statements in accordance with the applicable financial reporting framework
        Enable the preparation of financial statements that are free from MATERIAL MISSTATEMENT whether due to FRAUD or ERROR
        Provide the auditor with:-
        Access to all information
        Additional information that the auditor may request
        Unrestricted access to persons within the entity
  2. Confirming that there is a COMMON UNDERSTANDING between the auditor & management of the terms of the audit engagement
Engagement Letter
1. Contractual form
2. Matters which SHALL be clarified in the engagement letter
  1. Objective & scope of the audit
  2. Auditor's responsibilities
  3. Managements responsibilities
  4. Identification of applicable financial reporting framework
  5. Expected form & contents of reports to be issued by the auditor & statement that there may be circumstances when a report may differ from this
3. Recurring audits
  1. Not required to send a new letter for each audit, but must ensure that the client still understands existing terms
Other changes in agreement terms
1. The auditor shall not agree to a change in the terms of the audit engagement where there is no reasonable justification for doing so
2. If there is reasonable justification for changing the terms, the new terms should be agreed upon & recorded
3. If the auditor is not able to agree to new terms
  1. Withdraw
  2. Consider if it is necessary to report the circumstances to other parties such as the shareholders or regulators

Nächster

ISA 210 - Agreeing the terms of audit engagements

Beschreibung

Zusammenfassung der Ressource

ähnlicher Inhalt

	Erstellt von littlepaz_2001 vor etwa 11 Jahre