Professional Documents
Culture Documents
Audit Evidence
Lecture Outline
Service Organisations
ii.
External Confirmations
iii.
Bank Confirmations
iv.
References
ISA 505 -
External Confirmations
Concept of outsourcing
ISA 402
Significance
Nature
Transactions
Processes
Procedures / degree of interaction
Controls
Accounting records
Financial reporting
Objectives of Auditor
Objectives of auditor
Needs to consider:
SLA -
Obtain a report
(Report Type 1 or 2)
Responsibility of auditor
Competence/independence
Standards
Period of report
Relevance
Tests of controls
Audit reporting
Opinion
ii) External
Confirmations
ISA 505
Examples?
Types of Requests?
Negative
Positive
Management involvement
Concerns (eg.electronic)?
Responses to Request
Debtors Circularisation
Objective
Considerations
audit risks
nature of balances
errors expected
nature of respondents.
Practical considerations
Timing
Roll-forwards
Responses
Professional scepticism - low/no response
Exceptions
Authority
Timing