Sie sind auf Seite 1von 18
://KBG Classified - Internal use 1
://KBG Classified - Internal use 1
://KBG Classified - Internal use 1
://KBG Classified - Internal use 1
://KBG Classified - Internal use 1

://KBG

Classified - Internal use

1

IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT
IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT
IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT THROUGH UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT

IDENTIFYING AND ASSESSING THE RISKS OF

MATERIAL MISSTATEMENT

THROUGH

UNDERSTANDING THE

ENTITY AND ITS ENVIRONMENT

PSA 315

://KBG

Classified - Internal use

://KBG

2

OBJECTIVE

UNDERSTANDING… IDENTIFY ENTITY ITS ENVIRONMENT ASSESS INCLUDING… INTERNAL CONTROL
UNDERSTANDING…
IDENTIFY
ENTITY
ITS
ENVIRONMENT
ASSESS
INCLUDING…
INTERNAL
CONTROL

://KBG

Design
Design

Design

Implemen tation Responses to the assessed risks of material misstatement
Implemen
tation
Responses to the
assessed risks of
material
misstatement
FRAUD Risks of material misstatement ERROR
FRAUD
Risks of
material
misstatement
ERROR
Basis for
Basis for

Classified - Internal use

3

DEFINITIONS

a) Assertions

b) Business risk

c) Internal control d) Risk assessment procedures e) Significant risk

://KBG

Classified - Internal use

b) Business risk c) Internal control d) Risk assessment procedures e) Significant risk ://KBG Classified -

4

REQUIREMENTS  Risk Assessment Procedures and Related Activities  The Required Understanding of the Entity

REQUIREMENTS

Risk Assessment Procedures and Related Activities

The Required Understanding of the Entity and Its

Environment, Including the Entity’s Internal Control Identifying and Assessing the Risks of Material Misstatement Material Weakness in Internal Control Documentation

://KBG

Classified - Internal use

5

RISK ASSESSMENT PROCEDURES AND RELATED ACTIVITIES Includes: Provides a basis for the identification and assessment
RISK ASSESSMENT PROCEDURES AND RELATED ACTIVITIES Includes: Provides a basis for the identification and assessment

RISK ASSESSMENT PROCEDURES AND

RELATED ACTIVITIES

Includes:

Provides a basis for the identification and assessment of risks of material misstatement at the financial statement and assertion levels.

(Note: This does not provide sufficient appropriate audit evidence to base the audit opinion .)

Inquiries of management, and of others within the entity who in the auditor’s judgment may have information that is likely to assist in identifying risks of material misstatement due to fraud or error.
Analytical procedures (To be discussed in PSA 520).

Observation and inspection

://KBG

Classified - Internal use

6

REQUIREMENTS  Risk Assessment Procedures and Related Activities  The Required Understanding of the Entity

REQUIREMENTS

Risk Assessment Procedures and Related Activities

The Required Understanding of the Entity and Its

Environment, Including the Entity’s Internal Control Identifying and Assessing the Risks of Material Misstatement Material Weakness in Internal Control Documentation

://KBG

Classified - Internal use

7

THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL The
THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL The

THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING

THE ENTITY’S INTERNAL CONTROL

ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL The Entity and Its Environment Internal Control ://KBG
The Entity and Its Environment
The Entity
and Its
Environment
Internal Control
Internal
Control

://KBG

Classified - Internal use

8

THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL Relevant

THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING

THE ENTITY’S INTERNAL CONTROL

Relevant industry, regulatory, and other external factors including the applicable financial reporting framework.
Relevant
industry,
regulatory, and
other external
factors including
the applicable
financial
reporting
framework.
The Entity
and Its
Environment
Nature of the Entity
Nature of the
Entity
Selection and application of accounting policies
Selection and
application of
accounting
policies
The auditor shall obtain an understanding of the … Measuremen t and review of the
The auditor shall
obtain an
understanding
of the …
Measuremen
t and review
of the
entity’s
financial
performance.
Objectives and Strategies
Objectives
and
Strategies

://KBG

Classified - Internal use

9

THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL Sources

THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING

THE ENTITY’S INTERNAL CONTROL

AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL Sources of Information: ://KBG Classified - Internal use
AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL Sources of Information: ://KBG Classified - Internal use

Sources of Information:

://KBG

Classified - Internal use

10

Components THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL
Components THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL

Components

THE REQUIRED UNDERSTANDING OF THE ENTITY AND ITS ENVIRONMENT, INCLUDING

THE ENTITY’S INTERNAL CONTROL

ITS ENVIRONMENT, INCLUDING THE ENTITY’S INTERNAL CONTROL Do you remember your CRIME? Control Activities Risk
Do you remember your CRIME?
Do you remember
your CRIME?
Control Activities Risk Assessment Internal Information Control System Monitoring Control Environment
Control
Activities
Risk
Assessment
Internal
Information
Control
System
Monitoring
Control
Environment

://KBG

Classified - Internal use

11

REQUIREMENTS  Risk Assessment Procedures and Related Activities  The Required Understanding of the Entity

REQUIREMENTS

Risk Assessment Procedures and Related Activities

The Required Understanding of the Entity and Its

Environment, Including the Entity’s Internal Control Identifying and Assessing the Risks of Material Misstatement Material Weakness in Internal Control Documentation

://KBG

Classified - Internal use

12

IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT misstatement at: The auditor shall identify and
IDENTIFYING AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT misstatement at: The auditor shall identify and

IDENTIFYING AND ASSESSING THE

RISKS OF MATERIAL MISSTATEMENT

misstatement at:
misstatement at:

The auditor shall identify and assess the risks of material

Financial Statement Level • Transactions Assertion • Account Level balances • Disclosures
Financial
Statement
Level
• Transactions
Assertion
• Account
Level
balances
• Disclosures
Basis for designing and performing further audit procedures
Basis for
designing
and
performing
further
audit
procedures

://KBG

Classified - Internal use

13

REQUIREMENTS  Risk Assessment Procedures and Related Activities  The Required Understanding of the Entity

REQUIREMENTS

Risk Assessment Procedures and Related Activities

The Required Understanding of the Entity and Its

Environment, Including the Entity’s Internal Control Identifying and Assessing the Risks of Material Misstatement Material Weakness in Internal Control Documentation

://KBG

Classified - Internal use

14

MATERIAL WEAKNESS IN INTERNAL CONTROL The auditor shall communicate material weaknesses in internal control identified

MATERIAL WEAKNESS IN INTERNAL

CONTROL

MATERIAL WEAKNESS IN INTERNAL CONTROL The auditor shall communicate material weaknesses in internal control identified

The auditor shall communicate material weaknesses in internal

control identified during the audit on a timely basis to

management at an appropriate level of responsibility, and, as required by PSA 260 (Revised), “Communication with Those Charged with Governance,” with those charged with governance (unless all of those charged with governance are involved in managing the entity).

://KBG

Classified - Internal use

15

REQUIREMENTS  Risk Assessment Procedures and Related Activities  The Required Understanding of the Entity

REQUIREMENTS

Risk Assessment Procedures and Related Activities

The Required Understanding of the Entity and Its

Environment, Including the Entity’s Internal Control Identifying and Assessing the Risks of Material Misstatement Material Weakness in Internal Control

Documentation

://KBG

Classified - Internal use

16

DOCUMENTATION The auditor shall document: a) The discussion among the engagement team and the significant
DOCUMENTATION
The auditor shall document:
a)
The discussion among the engagement team and the significant
b)
c)
decisions reached;
Key elements of the understanding obtained regarding each of the
aspects of the entity and its environment and of each of the
internal control components; the sources of information from
which the understanding was obtained; and the risk assessment
procedures performed;
The identified and assessed risks of material misstatement at the
financial statement level and at the assertion level;
d)
The risks identified, and related controls about which the auditor
has obtained an understanding.

://KBG

Classified - Internal use

17

Questions?

Questions? ://KBG Classified - Internal use 18
Questions? ://KBG Classified - Internal use 18

://KBG

Classified - Internal use

Questions? ://KBG Classified - Internal use 18

18