Use of Systems of Internal Control by Auditors

Question 1

What does ISA 315 require?

Answer 1

Auditor to understand the system of internal control insofar as it is relevant to preparation of FSs

Question 2

Auditor shall (Assess)

Answer 2

Assess the adequacy of the accounting system as a basis for prearing the accounts

Question 3

Auditor shall (identify)

Answer 3

identify the types of potential misstatements that could occur in the accounts

Question 4

Auditor shall (consider)

Answer 4

Consider factors that affect the risk of misstatements

Question 5

Auditor shall (design)

Answer 5

Design appropriate audit procedures