01 nvj sa 200, 300, 320 - wirc · general principles & responsibilities sa 200 – overall...
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Standards on Auditing
Saturday Saturday Saturday Saturday –––– 25252525thththth February 2012February 2012February 2012February 2012
Western India Regional Council
Workshop on Auditing Standards
of ICAI
Standards on Auditing SA 200, SA 300 & SA 320
Restriction on Disclosure and Use of DataThe data in this document contains trade secrets and confide ntial or proprietary information of SARDA & PAREEK,Chartered Accountants, the disclosure of which would provi de a competitive advantage to others. As a result, thisdocument shall not be disclosed, used or duplicated, in whol e or in part, for any purpose other than to evaluate SARDA &PAREEK. The data subject to this restriction are contained i n the entire document.
CA Niranjan Joshi
Disclaimer
These are my personal views and can not be construed to be the views of the ICAI or my firm.
No representations or warranties are made by the WIRC with regard to this presentation
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These views do not and shall not be considered as a professional advice.
This presentation should not be reproduced in part or in whole, in any manner or form, without my written permission.
General Principles & Responsibilities
■ SA 200 – Overall Objectives of the Independent Auditor andthe Conduct of an Audit in Accordance with Standards onAuditing 01.04.2010
■ SA 210 – Agreeing the Terms of Audit Engagements01.04.2010
■ SA 220 – Quality Control for an Audit of Financial
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■ SA 220 – Quality Control for an Audit of FinancialStatements 01.04.2010
■ SA 230 – Audit Documentation 01.04.2009
■ SA 240 – The Auditor’s Responsibilities Relating to Fraud inan Audit of Financial Statements 01.04.2009
General Principles & Responsibilities
■ SA 250 – Consideration of Laws and Regulation in anAudit of Financial Statements 01.04.2009.
■ SA 260 – Communication with Those Charged withGovernance 01.04.2009
■ SA 265 – Communicating Deficiencies in Internal Controlto Those Charged with Governance01.04.2010
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to Those Charged with Governance01.04.2010
■ SA 299 - Responsibility of Joint auditors 01.04.1996
SA 200 – Overall Objectives of the Independent Auditor and
conduct of an audit in
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conduct of an audit in Accordance with SA
SA 200 – Introduction
■ Effective for Audits of Financial Statements for periodsbeginning on or after 01.04.2010
■ Scope
Establishes independents auditors overall responsibilitieswhen conducting an audit of Financial Statements
Overall Objective of Auditor
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Overall Objective of Auditor
Nature & Scope of Audit designed to meet those objectives
Explains scope, authority & structure of SAs
Sets out general responsibilities of auditors
Obligation to comply with SAs
SA 200 – Scope
■ An Audit of Financial Statements (FS)
■ Audit enhances degree of confidence in FS
■ Expression of opinion on preparation of FS in accordancewith FRF
■ Does not ensure:
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future viability of entity
Efficiency & Effectiveness of Management
■ SAs do not:
Impose responsibilities on management / TCWG
Override L & R
SA 200 – Definitions
■ Reasonable Assurance
SA Requires auditor to obtain reasonable assurance
Obtain SAAE to reduce audit risk to an acceptably low level
Absolute assurance not possible because of inherentlimitation of audit
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limitation of audit
Materiality to be applied at planning as well as performance
SA 200 – Definitions
■ Practical & Legal limitations on ability to obtain auditevidence
Management and others do not provide complete infointentionally / unintentionally
audit procedures used to gather audit evidence may beineffective against fraud detection
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ineffective against fraud detection
audit is not official investigation into alleged wrongdoings
auditor does not have specific legal powers such as power ofsearch
SA 200 – Definitions
■ Balance between Benefits & Costs
Matter of difficulty
Time
Cost involved
Not valid reasons for auditor to omit audit procedures for
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Not valid reasons for auditor to omit audit procedures forwhich there is no alternative or to be satisfied with lesspersuasive audit evidence.
SA 200 – Objective
■ Objectives of SADesigned to support the Auditor in obtaining reasonableassuranceExpectations from AuditorExercise professional judgementmaintain professional skepticismIdentify & assess risk of material misstatement
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Identify & assess risk of material misstatementObtain SAAE about material misstatementDesign and implement appropriate responses to assessedrisksForm opinion on the FS based on audit evidence obtained.
SA 200 - Continued
■ Overall Objective of the Auditor
Obtain reasonable assurance whether FS as a whole are freefrom material misstatement whether due to fraud / error
Report on FS and communicate as required by Sas.
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SA 200 – Continued
DefinitionsApplicable FRF (Fair Presentation Framework)– Adopted bymanagement / TCWG in the preparation and presentation of FS:- That is acceptable in view of the nature of the entity- Objectives of the FS- Requirements of L & R
Fair Presentation Framework – FRF that requires compliance with therequirements of the framework and:
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requirements of the framework and:- Acknowledges explicitly or implicitly that, to achieve fair presentation ofFS; or- Acknowledges explicitly that it may be necessary for management to departfrom requirement of the framework to achieve fair presentation of FS (inextremely rare conditions)
ComplianceFramework – FRF that requires compliance with therequirements of the framework, but does not contain the acknowledgementsas required in case of fair representation framework
SA 200 – Continued
Audit Evidence – Information used by Auditors:- In arriving at the conclusions- On which the opinion of auditors is basedIt includes- Both information contained in the accounting records underlying the FS &- Other informationSufficiency – measure of the quantity of audit evidenceAppropriateness – measure of the quality of audit evidence
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Appropriateness – measure of the quality of audit evidenceAudit Risk – The Risk that:- The auditor expresses an inappropriate audit opinion- When the financial statements are materially misstated- Audit risk is a function of risks of material misstatements and detection
riskAuditor – person conducting the audit. - Engagement Partner, othermembers of the engagement team, or firm, Where SA expressly intends that arequirement or responsibility be fulfilled by the engagement partner.
SA 200 – Definition
Detection Risk – The risk that:
- Procedures will not detect a material misstatement that exists; and
- That could be material, either individually or when aggregated with othermisstatements
Financial Statements – a structured representation of historical financialinformation:
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information:
- Including related notes, ordinarily comprise a summary of significantaccounting policies and other explanatory information
- Intended to communicate an entity’s economic resources or obligations ata point in time or
- The changes therein for a period of time in accordance with FRF
SA 200 – Continued
Historical Financial Information
- Info expressed in financial terms in relation to a particular entity
- Derived primarily from that entity’s accounting system
- About economic events occurring in past time periods
- About economic conditions or circumstances at points in time in the past
Management
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Management
- Persons with executive responsibility for the conduct of entity’s operations
- For some entities in some jurisdictions, management includes some or allof those charged with governance, for e.g., executive members ofgovernance board or an owner – manager.
SA 200 – Definition
Misstatement – A difference between:
- Amount, classification, presentation, or disclosure of a reported FS item;and
- Amount, classification, presentation, or disclosure that is required for theitem to be in accordance with FRF
- Can arise from error or fraud.
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- Can arise from error or fraud.
- In case of fair presentation framework, also include those adjustments ofamounts, classifications, presentation, or disclosures that, in the auditor’sjudgment, are necessary for the FS to be presented fairly, in all materialrespects, or to give a true and fair view.
SA 200 – Definition
Premise, relating to the responsibilities ofmanagement/TCWG on which an audit is conducted
Management / TCWG have the following fundamental responsibilities
- Preparation and presentation of FS in accordance with the applicable FRF –this includes Design, implementation and maintenance of IC; and
- To provide the auditor with:
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- To provide the auditor with:
- All relevant info for the preparation and presentation of the FS;
- Any additional info requested by the auditor; and
- Unrestricted access to within the entity.
- Applies to fair presentation framework.
- May also be referred to as the “premise”.
SA 200 – Definition
Professional Judgment – The risk that:
- Application of relevant training, knowledge and experience, within thecontext provided by auditing,accounting and ethical standards,
- In making informed decisions about the courses of action,
- That are appropriate in the circumstances of the audit engagement.
Professional Skepticism – an attitude that includes:
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Professional Skepticism – an attitude that includes:
- A questioning mind, being alert to conditions which may indicate:
- Possible misstatement due to an error or fraud, and
- A critical assessment of audit evidence
Reasonable Assurance – In the context of an audit of financial statements,a high, but not absolute, level of assurance.
SA 200 – Definition
Risk Of Material Misstatement – The risk that:- FS are materially misstated prior to audit- Consists of two components at the assertion level:
- Inherent Risk – the susceptibility of an assertion that could be material,either individually or in aggregate, before considerations of any relatedIcs
- Control Risk - The risk that a misstatement that could occur in anassertion that could be material, either individually or in aggregate, willnot be prevented, or detected and corrected, on a timely basis by the
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not be prevented, or detected and corrected, on a timely basis by theentity’s IC
Those Charged with Governance – Person(s) or organisation(s)With responsibility for overseeing the strategic direction of the entity; andObligations related to the accountability of the entity. Includes overseeing thefinancial reporting process. For some entities in some jurisdictions, includemanagement personnel, e.g, executive members of a governance board of aprivate or public sector entity, or an owner-manager.
SA 200 – Definition
Ethical Requirements relating to audit of FS
- Comply with relevant ethical requirements relating to an audit of FSincluding Independence.
- Independence: Of mind & In appearance.
- Safeguards auditor’s ability to form opinion without being influenced bycompromising factors.
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- Enhances ability to act with integrity.
- Be objective.
- Maintain professional skepticism.
SA 200 – Definition
Professional Skepticism
- Plan and perform audit with professional Skepticism.
- Necessary for critical assessment of audit evidence.
- Reduces risk of:
- Overlooking unusual circumstances.
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- Overgeneralising when drawing conclusions from audit observations.
- Using inappropriate assumptions in determining nature, timing &extent of audit procedures & evaluating the results thereof.
SA 200 – Definition
Professional Judgment- Exercise in planning and performing an audit.- Expectations from auditor:
- It is exercised by an auditor.- Whose training, knowledge & experience have assisted.- In developing the necessary competencies.- To achieve reasonable judgments.- Its exercise depends on facts & circumstances known to the auditor.
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- Its exercise depends on facts & circumstances known to the auditor.- Can be evaluated based on whether the judgment reached:
- Reflects a competent application of auditing & accounting principles.- Is appropriate in the light of & consistent with the facts & circumstances
that were known to auditor- till the date of audit report.- To be exercised throughout audit.- To be appropriately documented.- Cannot be used to justify decisions that are not otherwise supported by
facts & circumstances of engagement or SAAE.
SA 200 – Definition
Conduct of Audit in accordance with SAs
- Complying with SAs relevant to audit:
- SA is relevant when:
- That SA is in effect, &
- Circumstances addressed by SA exist.
- Have an understanding of the entire text of SA.
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- Have an understanding of the entire text of SA.
- Do not represent compliance with SAs in audit report unless auditorcomplies with SA 200 & other
- SAs relevant to audit.
SA 200 – Objective stated in each SA
- Use this objective to achieve overall objectives- Have regard to interrelationship between SAs:
- Determine if any audit procedure in addition to that required by SAs isnecessary.
- Evaluate, SAAE has been obtained.- Complying with relevant requirements:- Unless:
- Entire SA is not relevant.
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- Entire SA is not relevant.- Requirement is not relevant because it is conditional & condition does
not exist.- Departure form requirement in exceptional circumstances – perform
alternative procedures to achieve aim of requirement.
SA 200 – Definition
Failure to achieve an objective:- Evaluate if the failure:- Prevents auditor from achieving the overall objectives of the auditor.- Necessitates modified audit opinion.- It is a significant matter for documentation.
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SA 300 – Planning an Audit of Financial Statements
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Effective for Audits of Financial Statements for periods beginning on or after April 1, 2008
SA 300 – Series
SA 300 – 499: Risk Assessment and Responses to Assessed Risks:
- Revised SA 300, “Planning an Audit of Financial Statements” (April 1,2008).
- SA 315, “Identifying and Assessing the Risk of Material MisstatementThrough Understanding the Entity and Its Environment”, (April 1, 2008).
- Revised SA 320, “Materiality in Planning & Performing an Audit” (April1, 2010)
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1, 2010)
- SA 330, “The Auditor’s Responses to Assessed Risks” (April 1, 2008).
- Revised SA 402, “Audit Considerations relating to an Entity Using aService Organisation” (April 1, 2010).
- SA 450, “Evaluation of Misstatements Identified During the Audit” (April1, 2010).
SA 300 – Introduction
■ Introduction:- Scope- Effective Date
■ Objective■ Requirements:
- Involvement of Key Engagement Team Member- Preliminary Engagement Activities- Planning Activities
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- Planning Activities- Documentation- Additional Considerations in Initial Audit Engagements.
■ Application and Other Explanatory Material on these aspects.■ Appendix
SA 300 – Scope
- Auditor’s responsibility to plan audit of financial statements.
- Framed in the context of recurring audits.
- Additional considerations for initial audit engagements.
Planning involves:
- Establish overall audit strategy.
- Developing audit plan.
Adequate planning helps the auditor:
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Adequate planning helps the auditor:
- To devote appropriate attention to important areas.
- Identify and resolve potential problems on timely basis.
- Properly organise and manage the audit.
- Assists Selection of engagement team members with requisite capabilities andcompetence.
- Co-ordination of the work done by auditors of components and experts.
- Facilitating direction and supervision of engagement team.
SA 300 – Scope
The nature and extent of planning activities vary according to:
- Size and complexity of the entity.
- Key engagement team members’ previous experience.
- Changes in circumstances.
Planning is a continuous and iterative process.
Timings of certain planning activities needs to be completed prior to the
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Timings of certain planning activities needs to be completed prior to theperformance of further audit procedures.
Auditor may discuss elements of planning with management, but planningremains responsibility of the auditor.
SA 300 – continued
Involvement of Key Engagement Team Members
To be involved in planning:
- Participate in discussion with audit team.
- Benefit of their experience & insight.
- Increases effectiveness & efficiency of planning.
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Involvement of Key Engagement Team Members:
- SA 315 also contains a requirement for discussion with the audit team as tothe susceptibility of the financial statements of the entity to materialmisstatements.
- Revised SA 240 also contains a requirement for discussion among auditteam as to susceptibility of the financial statements to fraud.
SA 300 – continued
Preliminary Engagement Activities
- Perform procedures required under SA 220(R), “Quality Control for anAudit of Financial Statements”: Client continuation, etc.
- Evaluate compliance with ethical requirements including independence.
- Establish understanding of terms of engagement as per SA 210(R),“Agreeing the Terms of Audit Engagement”.
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SA 300 – continued
Preliminary engagement activities assists in identifying & evaluatingevents/circumstances that may adversely affect the auditors ability to plan &perform the engagement.
Enables the auditor to plan an audit engagement for which, for example:
- The auditor maintains the necessary independence and ability to perform theengagement.
- There are no issues with management integrity that may affect the auditor’swillingness to continue the engagement.
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willingness to continue the engagement.
- There is no misunderstanding with the client as to the terms of theengagement.
Client continuance and ethical requirements:
- Occurs throughout the Audit.
- Current audit - At the beginning.
- Continuing audit – Shortly after (In connection with) the completion ofprevious audit.
SA 300 – continued
Establish overall strategy to set the scope, timing & direction of audit plan.
To establish overall audit strategy:
- Identify characteristics of engagement.
- Ascertain reporting objectives.
- Identify factors significant to direct audit team’s efforts.
- Consider results of preliminary engagement activities.
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- Consider results of preliminary engagement activities.
- Ascertain nature, timing & extent of resources required.
SA 300 – continued
Assists the auditor in determining:
- How/ When/ Amount of resources deployed for specific audit areasand their management.
- Establishment of the overall audit strategy and the detailed audit planare not necessarily discrete or sequential processes, but areclosely inter-related since changes in one may result in consequential changes to theother.
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Considerations Specific to Smaller Entities
- Co-ordination of, and communication between, team members areeasier. Establishing the overall audit strategy for the audit of a smallentity need not be a complex or time-consuming exercise.
SA 300 – continued
Contents of Audit Plan:
- Nature, timing & extent of RAPs.
- Nature, timing & extent of planned further audit procedures at assertionlevel.
- Other procedures required to comply with SAs.
Update & change the overall audit strategy & audit plan as necessary.
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Update & change the overall audit strategy & audit plan as necessary.
Plan nature, timing & extent of direction, supervision & review ofengagement team members.
SA 300 – continued
Contents of audit plan
- Planning of the auditor's risk assessment procedures occurs early in the auditprocess.
- Planning the nature, timing and extent of specific further audit proceduresdepends on the outcome of those risk assessment procedures.
- Auditor may begin the execution of further audit procedures for some classes oftransactions, account balances and disclosures before planning all remainingfurther audit procedures.
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further audit procedures.
Update audit plan
Need:
- Unexpected events,
- Changes in conditions,
- Audit evidence obtained from the results of audit procedures, and
- Information comes to the auditor’s attention that differs significantly from theinformation available when the auditor planned the audit procedures.
SA 300 – continued
Direction, supervision & review
Factors affecting direction, supervision & review:
- The size and complexity of the entity.
- The area of the audit.
- The assessed risks of material misstatement.
- The capabilities and competence of the individual team members performingthe audit work.
- (See Revised SA 220, ‘Quality Control for an Audit of Financial Statements’ for
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- (See Revised SA 220, ‘Quality Control for an Audit of Financial Statements’ formore guidance.)
Considerations for SMEs:
- Forming an objective view on the appropriateness of the judgments made in thecourse of the audit can present practical problems when the same individualalso performs the entire audit.
- When particularly complex or unusual issues are involved, and the audit isperformed by a sole practitioner, it may be desirable to consult with othersuitably-experienced auditors or the auditor’s professional body.
SA 300 – Documentation
Overall audit strategy:
- Necessary for proper planning & communicating significant matters to auditteam.
Audit plan:
- Record of proper planning & review of audit procedures for approval before use.
Significant changes to overall audit strategy/ audit plan and reasons for changes:
- Reflects appropriate response to these changes.
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Considerations Specific to Smaller Entities.
- A suitable, brief memorandum may serve as the documented strategy.
- For the audit plan, standard audit programs or checklists drawn up on theassumption of few relevant control activities, as is likely to be the case in asmaller entity, may be used provided that they are tailored to thecircumstances of the engagement, including the auditor’s risk assessments.
SA 300 – continued
Additional Considerations in initial Audit Engagements
Before starting initial audit engagement:
- Perform procedures required under revised SA 220 – client acceptance, etc.
- Communicating with predecessor auditor.
Additional matters to consider in Audit Strategy and Audit Plan:
- Any major issues discussed with management.
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- Any major issues discussed with management.
- Audit procedures necessary regarding opening balances.
- Other procedures required by firm’s QC system.
SA 300 – continued
Special considerations for initial audit engagements in establishing overallaudit strategy and audit plan:
Major issues discussed with management:
- Application of accounting principles or of auditing and reportingstandards.
- The communication of these matters to TCWG.
- How these matters affect the overall audit strategy and audit plan.
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- How these matters affect the overall audit strategy and audit plan.
Audit procedures necessary to obtain sufficient appropriate audit evidenceregarding opening balances (see Revised SA 510, Initial Audit Engagements-Opening Balances).
Other procedures required by the firm’s system of QC for initial auditengagements.
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SA 320 – Materiality in Planning &Performing an Audit
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Effective for Audits of Financial Statements for periods beginning on or after April 1, 2010
SA 320 – Overview
■ Introduction:- Scope- Materiality in context of an Audit- Effective Date
■ Objective■ Definitions■ Requirements
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■ Requirements- Determining Materiality and Performance Materiality
when Planning the Audit.- Revision as the Audit Progresses- Documentation
■ Application and Other explanatory material on theseaspects
SA 320 – Scope
SCOPE
This SA deals with SA 450 explains
Auditor’s
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Auditor’s Responsibility Application of Materiality
Apply the concept of materiality
Evaluating Effect of
In planning & performing audit of FS
Identified misstatements
on audit
Uncorrected misstatements of
FS
SA 320 – Materiality
Materiality in the Context of an AuditFRFs normally discuss “materiality” in context ofpreparation & presentation of FS:
- Misstatements are material if in aggregate/individually may influence economic decision ofusers.
- Judgments on materiality made in the light of
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- Judgments on materiality made in the light ofsurrounding circumstances.• Affected by size/nature of misstatements or both.
Judgments on matters material for FS users are based oncommon financial info needs as a group:
• Not specific needs.
SA 320 – Consideration of Materiality
Consideration of Materiality
Planning & PerformingAudit
Forming Audit Opinion
Evaluating effect of
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Evaluating effect of identified / uncorrected
misstatements
Judgments as to size of misstatement considered
material
SA 320 – Continued
Materiality and Audit Risk:
Materiality and audit risk are considered throughout audit, in particular,when;
• Identifying and assessing the risks of material misstatement;
• Determining the nature, timing and extent of further auditprocedures; and
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procedures; and
• Evaluating the effect of uncorrected misstatements, if any, on the FSand in forming the opinion in the auditor’s report.
SA 320 – Auditor’s Objective
Apply the concept of Materiality
Appropriately in planning and performing the audit.
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SA 320 – Definition
Performance materiality:
- Amount(s) set by auditor at less than materiality for FS as awhole.
- To reduce to an appropriate low level.
- Probability that aggregate of uncorrected & undetectedmisstatements exceeds materiality for FS as a whole.
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misstatements exceeds materiality for FS as a whole.
If applicable, performance materiality also refers to the amountor amounts set by the auditor at less than the materiality levelor levels for particular classes of transactions, account balancesor disclosures.
SA 320 – Continued
Determining Materiality & Performance Materiality in Planning
Overall materiality of FS as a whole
Materiality for class of transactions / account balance / disclosures
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Set to reduce probability that aggregate uncorrected &
undetected misstatement in FS exceed materilaity at FS
level
Set to reduce probability that aggregate of uncorrected & undetected misstatement in
particulars CT/AB/D
Assess RMM Determine NTE & further Audit Procedures
SA 320 – Continued
- Materiality determination is done while establishing the overall auditstrategy.
- Planning the audit solely to detect individually material misstatementsoverlooks the fact that the aggregate of individually immaterialmisstatements may cause the FS to be materially misstated, and leavesno margin for possible undetected misstatements.
- Determination of performance materiality is not a simple mechanicalcalculation and involves the exercise of professional judgment. It is
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- Determination of performance materiality is not a simple mechanicalcalculation and involves the exercise of professional judgment. It isaffected by:
• Auditor’s understanding of the entity, updated during theperformance of the risk assessment procedures; and
• Nature and extent of misstatements identified in previous audits andthereby the auditor’s expectations in relation to misstatements in thecurrent period.
SA 320 – Continued
Using Benchmarks to Determine Materiality at FS level- Involves use of professional judgment.- Starting point - a percentage often applied to a chosen
benchmark.- For less/ more than 12 month FS period, materiality relates to
whole of that period.- Chosen benchmarks ordinarily include:� Prior period financial results & State of Affairs (SoA).
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� Prior period financial results & State of Affairs (SoA).� Period to date results & SoA.� Budgets & forecasts (adjusted for significant changes).� Changes in the industry/economic environment of entity.
SA 320 – Engagement Team & Firm
Factors affecting identification of an appropriate benchmark include:
- Elements of FS.
- Items of focus for users of FS.
- Nature of the entity.
- Industry & economic environment.
- Ownership & finance structure.
- Relative volatility of benchmark.
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- Relative volatility of benchmark.
Chosen Benchmark:
- For example, when, as a starting point, the materiality at FS level isdetermined for a particular entity based on a percentage of Profit beforeTax from continuing operations, circumstances that give rise to anexceptional decrease or increase in such profit may lead the auditor toconclude that the materiality at FS level is more appropriately determinedusing a normalised Profit before Tax from continuing operations figurebased on past results.
SA 320 – Continued
Materiality for Classes of Transactions/ Account Balances/ Disclosures- Factors that may indicate need to set such materiality level:
• L&R or FRF affect users’ expectations regarding measurement/disclosure of certain items.
• Key disclosures wrt industry in which entity operates.• Focus on particular aspects of entity’s business that is separately
disclosed in FS.
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In considering whether, in the specific circumstances of the entity, suchclasses of transactions, account balances or disclosures exist, auditor mayfind it useful to obtain an understanding of views and expectations ofTCWG and management.
SA 320 – Continued
Revision as Audit ProgressesRevise materiality if auditor becomes aware of information during audit :- That would have caused him to have determined a different amount
initially.
If materiality level requires lowering, determine:- Need to revise performance materiality.- Appropriateness of Nature, Timing and Extent (NTE) of further audit
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- Appropriateness of Nature, Timing and Extent (NTE) of further auditprocedures.
SA 320 – Continued
Materiality may need to be revised as a result of:
- A change in circumstances that occurred during the audit for example, adecision to dispose of a major part of the entity’s business.
- New information.- A change in auditor’s understanding of entity and its operations as a
result of performing further audit procedures.
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result of performing further audit procedures.- For example, if during audit it appears as though actual financial results
are likely to be substantially different from anticipated period endfinancial results that were used initially to determine materiality for Fsas a whole, auditor revises that materiality.
SA 320 – Documentation
Include following amounts & the factors considered in their determination
- Materiality for FS as a whole.- Materiality level for CT/AB/D.- Performance materiality.- Any revision to any of above.
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*****
Checklists
Checklist for SA 200 Checklist
Checklist for SA 300 Checklist
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Checklist for SA 320 Checklist
!!! Thank You !!!
Questions???
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!!! Thank You !!!
CA Niranjan Joshi, B.Com ., FCA, DISA (ICAI)Email: [email protected]