What is AAS in audit?

In India, Auditing and Assurance standards are issued by ICAI. Accordingly, AASB issues Statements on Standard Auditing Practices and Auditing and assurance Standards under the authority of the Council.

What types of information does as No 12 suggest the auditor should consider when obtaining an understanding of the company and its environment?

In obtaining an understanding of the company, the auditor should evaluate whether significant changes in the company from prior periods, including changes in its internal control over financial reporting, affect the risks of material misstatement.

What is ICFR?

ICFR refers to the controls specifically designed to address risks related to financial reporting. In simple terms, a company’s ICFR consists of the controls that are designed to provide reasonable assurance that the company’s financial statements are reliable and prepared in accordance with IFRS.

What is the role of Iaasb?

The International Auditing and Assurance Standards Board (IAASB) is an independent standard-setting body that serves the public interest by setting high-quality international standards for auditing, quality control, review, other assurance, and related services, and by facilitating the convergence of international and …

What are some sources of information that can help the auditor in obtaining an understanding of the client?

Information sources that might be used by the auditor are, for example, the client company’s different documents, publications regarding the company’s industry and business. The auditor’s colleagues may also have knowledge about the company’s industry that might be useful for the auditor.

What is the ultimate reason why the auditor obtains an understanding of the entity and its environment?

The purpose of obtaining an understanding of the entity and its environment, including its internal control, is to identify and assess risks of material misstatement and to design and perform procedures that respond to such risks.

What is IFC FR?

Meaning of Internal Financial Controls (IFC) orderly and efficient conduct of business, including adherence to company’s policies, safeguarding of its assets, prevention and detection of frauds and errors, timely preparation of reliable financial information.