MGAD10H3 Chapter Notes - Chapter 3: Business Process, Contingent Liability, Profit Margin
Document Summary
Cas 240 the auditor"s responsibilities relating to fraud in an audit of financial statements. Cas 300 planning an audit of financial statements. Cas 315 identifying and assessing the risks of material misstatement through understanding the entity and its environment. Planning stage gaining an understanding of the client, identifying risk factors, developing an audit strategy, and assessing materiality. Materiality information that impacts the decision-making process of the users of the financial statements. Audit strategy a strategy that sets the scope, timing, and direction of the audit and provides the basis for developing a detailed audit plan. Execution (performing) stage detailed testing of controls and substantive testing of transactions and accounts. Reporting stage evaluating the results of the detailed testing in light of the auditor"s understanding of their client and forming an opinion on the fair presentation of the client"s financial statements. Cas 300 requires that an auditor plan their audit to reduce audit risk to an acceptably low level.
