160140
Description
Mind Map by littlepaz_2001, updated more than 1 year ago
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Created by littlepaz_2001
almost 11 years ago
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ISA 250: Consideration of laws and regulations in an audit of financial
statements.
- Responsibility of management
- To ensure operations are conducted in accordance with laws & regulations
- To ensure operations are conducted in accordance with laws & regulations
- Responsibility of the auditor
- The auditor is not and cannot be held responsible for preventing non compliance.
- There is unavoidable risk that some material mistatements go undetected.
- Conduct designed to conceal:- collusion, forgery, deliberate failure to record a transaction.
- Conduct designed to conceal:- collusion, forgery, deliberate failure to record a transaction.
- There is unavoidable risk that some material mistatements go undetected.
- The auditor is not and cannot be held responsible for preventing non compliance.
- Objective of the auditor
- Obtain sufficient appropriate audit evidence regarding compliance.
- Perform specified audit procedures to help identify instances of non compliance.
- Respond appropriately to non-compliance or suspected non compliance.
- Respond appropriately to non-compliance or suspected non compliance.
- Perform specified audit procedures to help identify instances of non compliance.
- Obtain sufficient appropriate audit evidence regarding compliance.
- Auditor's consideration of compliance
- Obtain an understanding of the legal & regulatory framework applicable to the entity and the industry or sector in
which they operate.
- How the entity is complying with that framework.
- Inquiring with management whether the entity is compliant.
- Inspecting correspondence, reading minutes.
- Inspecting correspondence, reading minutes.
- Ask management to provide written representation.
- Inquiring with management whether the entity is compliant.
- Existing understanding
- Update the understanding
- Enquire of management
- Enquire of management
- Update the understanding
- How the entity is complying with that framework.
- Obtain an understanding of the legal & regulatory framework applicable to the entity and the industry or sector in
which they operate.
- Audit procedures when non compliance is identified.
- Understanding of the nature of the act and the circumstances in which it has occurred.
- Further information to evaluate the possible effect on the FS's
- Potential financial consequences
- Disclosure
- Fair presentation
- If sufficient information cannot be obtained, evaluate the lack of sufficient appropriate audit evidence on the auditor's opinion.
- Reliability of written representations.
- Reliability of written representations.
- Potential financial consequences
- Further information to evaluate the possible effect on the FS's
- Understanding of the nature of the act and the circumstances in which it has occurred.
- Reporting suspected non-compliance.
- Those charged with governance
- As soon as practicable.
- As soon as practicable.
- Users of the audit report.
- Material & effects the FS's- Express a qualified or an adverse opinion.
- Lack of sufficient appropriate audit evidence - Qualified or disclaim an opinion due to limitation of scope.
- Lack of sufficient appropriate audit evidence - Qualified or disclaim an opinion due to limitation of scope.
- Material & effects the FS's- Express a qualified or an adverse opinion.
- Those charged with governance
- Withdrawal may be the only option if the entity does not take the remedial action the auditor thinks is necessary.
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