Audit Audit Firm
The firm may have additional resources to support audit team members assigned to certain line of business clients. There may be internal information notices or technical guidance on how to apply industry accounting standards. For example, when auditing clients in the banking sector, an audit firm may provide guidance on the application of certain IFRS® standards to classes of financial instruments normally held by banks. Assurance staff can then refer to this guide in performing their assurance engagements, particularly when identifying risks of material misstatement.
It is also important to remember that while industry-specific balances and transactions may involve risks of material inaccuracy, so can "ordinary" balances and transactions. For example, when auditing a bank, there are many risks to consider that are unrelated to specific bank transactions and balances, such as: B. Impairment of property values, allowances and impairment of goodwill. Such "normal" risks should not be discounted simply because a customer operates in a specialized industry.
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