ISA's by Description

Question 1

ISA 200

Answer 1

Obtained RA that FS are free from MM whether by fraud or error. SAAE on compliance with Laws & Regs. RA is high level of assurance, when AR acceptable.

Question 2

ISA 210

Answer 2

Objective/Scope, Responsibilities, what FRS, what deliverables

Question 3

ISA 220

Answer 3

Appropriate standard/risk reduced to acceptabel level (give risky stuff to senior)

Question 4

ISQC 1

Answer 4

Comply w/ code of ethics. Building blocks: Leadership,HR,Performance,Ethics,GTAC,Monitoring

Question 5

ISA 230

Answer 5

No docs->no evidence->no review->review important. Easy 4 experienced external auditor 2 review.

Question 6

ISA 240

Answer 6

Fraud is intentional (FR or misappropriation). Primary resp w/ mgmt (prevention through adaquate controls). Secondary w/ auditors (RA no MM, skeptical). If fraud - material?, additional testing/JE’s, revise CRA, rely on reps?

Question 7

ISA 250

Answer 7

Understand/enquire/inspect/reps. Report to directors, audit committee, 3rd parties if public interest, MLRO. Only in audit report if M affects FS.

Question 8

ISA 260

Answer 8

SADs, indi, wording of modifications, reps, responsibilities, difficulties, view on sig acc pol

Question 9

ISA 265

Answer 9

To management if indv/colective material IN WRITING. Describe failure, effect on FS/audit

Question 10

ISA 300

Answer 10

STRAT: Scope (ASM), timing, mgmt . PLAN: CRA/NT&E (w,w,h,w) to reduce audit risk (IRxCRxDR) i.e. ROWOpinion. Flex.

Question 11

ISA 315

Answer 11

Do a UBT by equiry/AR/news. Look at competition/industry/regs/ops/ownership/investments/A&A/GAAP/KPIs/objs

Question 12

ISA 330

Answer 12

See ISA 300 (lower DR - complex to seniors/?reliance on IC/#steps/#samples/AR/experts

Question 13

ISA 320

Answer 13

Material iff omission/misstatement could influence economic decision. Rev 0.5, Assets 1, PBT 5. Consider FS as a whole, unique circumstances, user req. PlanM <M to assist sampling/lower aggregation M.

Question 14

ISA 402

Answer 14

Undstd contract(nature,value,interaction), controls/reviewed by client. Effect on Audit Risk. Get Type 1/2 Report. Visit?

Question 15

ISA 450

Answer 15

Create SAD -> cum.material? -> revise ISA 300. Report timely & request all adj. If mgmt won’t -> revise ISA320, report TTCWGov,req reps.

Question 16

ISA 500

Answer 16

SAAE for reasonable conc to base opinion. SUF = quantity, APPRO = quality (relevant & reliable – ext>int,IC>non,direct>ext,written>verbal)

Question 17

ISA 501

Answer 17

STOCK: Attend,asses instructions,observe,test,tie through. LITIGATION: Equire, board mins, in TB/PL. P&D OF SEG - understand, AR, test

Question 18

ISA 505

Answer 18

Considerered reliable iff maintain control. If mgmt refuse then CWTCWG (ISA260)

Question 19

ISA 520

Answer 19

Check FS consistent w/ understanding. Do a checker, Subsqt Events, Going concern review, management rep etc.

Question 20

ISA 530

Answer 20

Similar to ISA 500. SUF & APP samples for reas conc on pop. Think what affects Microstart (CRA/TE/extrapolate/statistical)

Question 21

ISA 540

Answer 21

SAAE estimates are reas. Document understanding (inputs/outputs,models,assumptions,controls,experts), Test, Reps

Question 22

ISA 550

Answer 22

Disclose entities and nature who have control/sig infl (even if no transactions or no value - hence materiality irrelevent). Review obvs stuff.

Question 23

ISA 560

Answer 23

ACTIVE DUTY to audit report (SAAE on ALL events). PASSIVE to FS issue (if aware ? report). Think EY (board mins, mgmt acc, reps, news)

Question 24

ISA 570

Answer 24

Fundamental: When Planning/Performing/Evaluating, auditor shud consider mgmts use of going concern assumption. Mgmt req’d to assess.

Question 25

ISA 580

Answer 25

General (directors' resp) + Specific (RPT w/ dir, ADC issues). Mgmt Write. Not substitute for corroborative evidence.

Question 26

ISA 600

Answer 26

Acceptance - can we get SAAE? rely on component auditor? what about amounts not audited? (>15% = sig). QUESTIONAIRE to assess if Competent (indi, skill, competence, knowledge, exp, resources, reputation)

Question 27

ISA 610

Answer 27

SUFF understanding of IA (can we rely). Eval FUNCTION (size,scope,competence,qualis) and WORK (did they SAAE,same conc,review?)

Question 28

ISA 620

Answer 28

Almost identical to ISA 610. Review work and findings.

Question 29

ISA 700

Answer 29

Indi auditors rep 'We have audited XYZ'. Mgmt Resp 'Mgmt resp for prep under IFRS, IC, etc'. Auditors Resp 'We used ISAs, RAffMM' [closing expectation gap]. Opinion 'In our opinion, FS are true and fair'. If listed then compliance w/ UK Code on CG). More optional discl nowadays.

Question 30

ISA 705

Answer 30

Dont fully show true and fair / Auditor doesnt have SAAE.

Question 31

ISA 706

Answer 31

True and Fair BUT bring to attention XYZ

Question 32

ISA 710

Answer 32

SAAE comparatives consistent (disclose if not), comparatives agree with PY FS.

Question 33

ISA 720

Answer 33

MM in unaudited info (does NOT affect opinion) -> Other Matter Paragraph