Page 93 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
• Ownership & Governance
• How entity is structured & financed
• Types of Investments (Including investment in special purpose entities)
• Its operations
Accounting policies (AP) Related Points:
• Selection of AP
• Application of AP
• Reason for change in AP
Financial Performance Related:
• Measurement & Review of financial performance
Objective & Strategy Related:
• Objectives
• Strategies
• And related Business Risks that may result in risks of material misstatement

(CNO-SA315.060) Risk That Requires Special Audit Consideration
Determine whether risk is significant risk, exclude effect of controls.
Consider following factors, (Shortcut- CFO-CSR)
C-Significant Changes
F-Risk of Fraud
O-Outside Normal Course of Business
C-Complexity
S-Subjectivity
R-Related parties Significant Transactions
After determining for Significant Risk obtain understanding & relevant controls

(CNO-SA315.080) Documenting the Risk
Auditor shall document:
• RAP performed understanding obtained & sources.
• Identified and Assessed RMM at FST Level & Assertion Level
• Related Controls
• Discussion concerning Engagement Team.

SA 315 (ICS)

INTERNAL CONTROL SYSTEM (Control related section)

(CNO-SA315-ICS.020) Internal Control In Small Business
Audit objectives are Same:
• Controls in Small & Large are not Same
• Segregation of duty is missing.
• In some case compensated by owner supervisory control
• Extensive use of substantive procedures

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