Skip to main content

ISRE 2400: Engagements to review financial

 By soft skills
ISRE 2400: Engagements to review financial
statements
2.1 A review will enable the auditor to state that nothing has come to his attention that causes
him to believe that the financial statements are not prepared in accordance with an identified
financial reporting framework. This is known as negative assurance.
2.2 The auditor should plan and perform the review with an attitude of professional scepticism
recognising that circumstances may exist which cause the financial statements to be
materially misstated.
2.3 The auditor should obtain sufficient appropriate evidence primarily through enquiry and
analytical procedures, to be able to draw conclusions.
2.4 The auditor and the client should agree on the terms of the engagement and an
engagement letter should be signed.
Labels:

Comments

Post a Comment

Popular posts from this blog

Polly Peck, Maxwell, Barings

soft skills Polly Peck, Maxwell, Barings The 20 th century <Polly Peck, Maxwell, Barings > In 1932, two economists Bearle and Means made some observations about American companies: ● Shareholders were more likely to sell their shares than speak out if they thought directors were not running the company very well. This could result in poor quality management never losing their jobs. ● Some American companies were getting very By the 1950s, companies were growing ever larger – what we now know as " The 1970s – 1990s saw problems starting to become common. By the late 1980s, there were some famous corporate collapses – some due to poor management, but many due to fraud: large , and with so many shareholders there was a growing gap between those who owned the companies, and those who controlled them. globalization " … the existence of large multinational companies with influence around the world was well under way. Polly Peck ● Rapid growth in the 1980s took this East...
Post a Comment
Read more

Corporate Governance

Corporate Governance varies around the World, largely due to different history and cultures. In the UK and US, the model is aimed primarily at the rights of shareholders. In Germany and much of continental Europe, and also in Japan, In Japan, many major company structures were traditionally based around banks. Large groups of companies from many industries would all be financed, and part-owned by a major bank, which would create a strong financial alliance. Cross-shareholdings between companies were common, and in many cases the companies in the "group" would all supply each other. In South America, Italy, Spain, and large parts of East Asia (e.g. Indonesia) the focus is more on banks play a more prominent role, often holding shares and having Board members. Such governance models tend to be more inclusive, ensuring that the rights of workers, customers and suppliers (and maybe the community) are represented at Board level. family ownership , with a large % of the bigges...
Post a Comment
Read more

AUDITING STANDARDS AND QUALITY CONTROL

soft skills Just as there are accounting standards, there are also audit standards to give auditors guidance (and in some cases rules) as to how they should perform their audit work. Many countries have their own national audit standards – e.g. In the UK, the Auditing Practices Board set them. There are also International Standards on Auditing (ISAs), which are set by the International Audit & Assurance Standards Board (IAASB), part of the International Federation of Accountants (IFAC). For countries without their own audit standards, the ISAs provide a set of standards that can be adopted, or altered based on national requirements. Quality control is partly achieved by having audit standards to follow ... however it is also achieved by the RSBs (e.g. ACCA) checking the audit work of their members, and handling complaints. The RSBs also have rules to ensure their members are keeping up to date with technical changes. AUDITING STANDARDS AND QUALITY CONTROL
Post a Comment
Read more