Category: Audit rules and methodology

To audit going concern under ISA 570, the auditor should follow the principles and procedures of auditing going concern, which are the principles and procedures that govern the assessment of an entity’s ability to continue as a going concern. The key steps in auditing going concern under ISA 570 are as follows: Understand the entity… Continue reading How to audit going concern under ISA 570

To audit trade payables, the auditor should perform the following steps: Understand the entity’s trade payables and the related business processes: The auditor should obtain an understanding of the entity’s trade payables, including the nature, timing, and amount of the payables, and the related business processes, such as the purchasing and payment processes. Assess the… Continue reading How to audit trade payables

To audit trade receivables, the auditor should perform the following steps: Understand the entity’s trade receivables and the related business processes: The auditor should obtain an understanding of the entity’s trade receivables, including the nature, timing, and amount of the receivables, and the related business processes, such as the sales and billing processes. Assess the… Continue reading How to audit trade receivables

In auditing, sampling is the process of selecting a subset of items or transactions from a population for the purpose of testing and evaluating the population. Sampling is used in auditing to provide the auditor with sufficient appropriate audit evidence to support the audit opinion, while avoiding the need to test and evaluate the entire… Continue reading Sampling in audits

In auditing, the concept of trivial refers to an item or matter that is insignificant or immaterial, and therefore does not require further attention or audit procedures. An item or matter is considered trivial if it is small in relation to the overall size and nature of the financial statements, and if it does not… Continue reading Trivial errors

Audit assertions are the statements made by the management of an entity about the financial statements, and are the basis for the auditor’s audit procedures and conclusions. The International Standards on Auditing (ISAs) specify certain audit assertions that the auditor should consider when planning and performing the audit, in order to obtain sufficient appropriate audit… Continue reading Audit assertions under the ISAs