Page 117 - CA Inter Audit PARAM

CA Ravi Taori
Alternatively, if the auditor is able to perform alternate audit procedures and can obtain sufficient and
appropriate audit evidence to resolve the issue, then he can give an unmodified opinion.

Audit Procedure regarding Presentation & Disclosure Old Course -- (M21M, M22R)
QNO
501.14 of Segment Information
Bhaskar CNO SA501.200
TRM Ltd. is a company engaged in manufacture of beauty products. It has hair care segment, skin care
segment and kids’ beauty products. The auditor wants to obtain sufficient appropriate audit evidence
regarding the presentation and disclosure of segment information in accordance with the applicable
financial reporting framework. Suggest the audit procedures in the given case.
OR
GPS & Co, Chartered Accountants, conducting the audit of Pratibha Ltd., a listed company for the year ended

31.03.2022 is concerned with the presentation and disclosure of segment information included in
Company's Annual Report. GPS & Co wanted to ensure that methods adopted by management for
determining segment information have resulted in disclosure in accordance with the applicable financial
reporting framework. Guide GPS & Co with 'Examples of Matters' that may be relevant when obtaining an
understanding of the methods used by the management with reference to the relevant Standards on
Auditing
Answer The auditor shall obtain sufficient appropriate audit evidence regarding the presentation and disclosure
of segment information in accordance with the applicable financial reporting framework by:

1. Obtaining an understanding of the methods used by management in determining segment
information. Further,

(i) Evaluating whether such methods are likely to result in disclosure in accordance with the
applicable financial reporting framework; and

(ii) Where appropriate, testing the application of such methods; and

2. Performing analytical procedures or other audit procedures appropriate in the circumstances.

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