B 1 procedures to obtain an understanding of internal control 2 tests of controls 3 tests of transactions 4 analytical procedures 5 tests of details of balances a 1, 2, and 3 b 3, 4, and 5. The auditor must obtain sufﬁcient appropriate audit evidence by performing statement level is affected by the auditor's understanding of the control envi-ronment an effective control environment may allow the auditor to have more performing audit procedures in response to assessed risks 1783.
Procedures to obtain an understanding of the client and it’s environment to describe the procedures used by the auditors to obtain an understanding of the client and its environment the procedures used to by the auditors include: (1) review of information from the prior-year’s audit (2) inquiries of management (3) reading board minutes (4) review of industry reports and review of the.
Collectively, procedures performed to obtain an understanding of the entity and its environment, including internal controls, represent the auditor's risk assessment procedures performed to assess the risk of material misstatement in the financial statements a major part of the auditor's risk assessment procedures are done to obtain an understanding of internal control. 326, audit procedures to obtain the understanding are referred to as risk as-sessment procedures because some of the information obtained by performing such procedures may be used by the auditor as audit evidence to support as-sessments of the risks of material misstatement in addition, in performing. Chapter 9-understanding internal controls we have seen that the level of understanding of internal controls to be obtained procedures to obtain an understanding the study of internal control and assessment of cr varies a lot from client to client for small clients for efficiency purposes, control procedures are ignored, cr is.
Describe the 4 steps performed by the auditor when obtaining an understanding of ic and assessing control risk as illustrated by figure 12-1, there are four phases in the process of understanding internal control and assessing control risk.
A primary objective of procedures performed to obtain an understanding of internal control is to provide the auditors with:(1) knowledge necessary to determine the nature, timing, and extent of further audit procedures(2) audit evidence to use in reducing detection risk(3) a basis for modifying tests of controls(4) an evaluation of the. Also, auditing standard no 18, related parties, requires the auditor to perform procedures to obtain an understanding of the company's relationships and transactions with its related parties that might reasonably be expected to affect the risks of material misstatement of the financial statements.