Page 52 - CA Final Audit Titanium Full Book. (With Cover Pages)

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Factors to be Considered: Account for factors such as necessary manpower, qualifications of the audit team,
and time constraints during the planning process.

(CNO-APSE.360) Risk and Control Evaluation
Risk and Control Assessment: Conduct a detailed risk and control assessment for each audit segment.
Consider the materiality levels during the risk and control assessment as they are directly linked to the audit
risks.
List Specific Risks: Identify and list the specific risks that need to be reviewed within each segment.
Documentation: Document the existing controls or determine the need for additional controls to mitigate
each identified risk.
Outline Steps: Outline the specific steps that need to be taken to test the effectiveness of each control.

(CNO-APSE.380) Testing
Understand: Auditors must gain a comprehensive understanding of the key risks and controls that need to be
evaluated in a specific audit area.
Test: After obtaining the necessary understanding, auditors should proceed to test the operating effectiveness
of the controls. The purpose of these tests is to determine whether the controls are functioning as designed.
Multiple Test Methods Available: There are multiple test methods available to auditors for assessing the
effectiveness of controls. These methods can be utilized to arrive at conclusions regarding the effectiveness of
the controls.

(CNO-APSE.400) Reporting
SA 700: SA 700 sets guidelines for the auditor's report on financial statements.
Evaluate evidence: Auditors evaluate evidence to express an opinion, ensuring compliance with financial
frameworks and statutory requirements like Company Law and ICAI's Accounting Standards.
Make Opinion: The report should provide a clear overall opinion on financial statements.
Be Consistent: Consistency is essential for understanding, but specific regulations may dictate report details.

SA 600

Using the Work of another Auditor.

(CNO-SA600.020) Introduction
Definition
1A. Component: Component" means a division, branch, subsidiary, joint venture, associated enterprises or
other entity whose financial information is included in the financial information audited by the principal
auditor.
1B. Principal Auditor: This is the auditor responsible for reporting on an entity's financial information,
including the financial information of one or more components audited by another auditor.
1C. Other Auditor: This is an auditor, other than the principal auditor, responsible for reporting on the
financial information of a component included in the financial information audited by the principal auditor.
Delegation
2A. General Principle of Delegation: The auditor, even when delegating work or using work performed by
others, remains responsible for forming and expressing an opinion on the financial information. They can rely
on others' work, provided they exercise adequate skill and care and have no reason to believe they should not
have relied on it.
2B. Use of Other Auditor's Work: When the principal auditor uses the work of another auditor, they must

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