Document ID: chunk:federal_register_of_legislation:F2025L00107:front:0:p37
Version: federal_register_of_legislation:F2025L00107
Segment Type: other
Provision Reference: 
Character Range: 122998–128758

close to the upper end of the spectrum of risk. (Ref: Para. A407)

140R. Irrespective of the assessed risks of material misstatement, the practitioner shall consider the need to design and perform substantive procedures for disclosures that, in the practitioner's judgement, are material. (Ref: Para. A440R–A441R)

141R. The practitioner shall consider whether external confirmation procedures are to be performed. (Ref: Para. A442–A443)

 1.            If substantive procedures are performed at an interim date and the practitioner intends to extend the conclusions of those substantive procedures for the remaining period, the practitioner shall perform: (Ref: Para. A444–A445)

         1.                 Substantive procedures, combined with tests of controls for the period subsequent to the interim period; or

         2.                 If the practitioner determines that it is sufficient, substantive procedures only that provide a reasonable basis for extending the conclusions to the period subsequent to the interim period.

Analytical Procedures

Limited Assurance                                                                                                                                                                                                                                                                                                                                                                                                   Reasonable Assurance
    143L. If designing and performing analytical procedures, the practitioner shall: (Ref: Para. A446–A447)                                                                                                                                                                                                                                                                                                             143R. If designing and performing analytical procedures, the practitioner shall: (Ref: Para. A446–A447)

       1.       Determine the suitability of particular analytical procedures, considering the reasons for the assessment of the risks of material misstatement at the disclosure level; and                                                                                                                                                                                                                               1.       Determine the suitability of particular analytical procedures for given assertions, considering the reasons for the assessment of risks of material misstatement and evidence from other procedures, if any, for these assertions; and

       2.       Develop an expectation about recorded quantities or ratios. (Ref: Para. A448L)                                                                                                                                                                                                                                                                                                                             2.       Develop an expectation about recorded quantities or ratios that is sufficiently precise to identify possible material misstatements.
    144L. If analytical procedures identify fluctuations or relationships that are inconsistent with other relevant information or that differ significantly from the expected result, the practitioner shall make enquiries of management about such differences. The practitioner shall consider the responses to these enquiries to determine whether additional procedures are necessary in the circumstances.      144R.  If analytical procedures identify fluctuations or relationships that are inconsistent with other relevant information or that differ significantly from expected quantities or ratios, the practitioner shall investigate such differences by:

                                                                                                                                                                                                                                                                                                                                                                                                                           1.       Enquiring of management and obtaining additional evidence relevant to management's responses; and

                                                                                                                                                                                                                                                                                                                                                                                                                           2.       Performing other procedures as necessary in the circumstances.

Sampling

 1.            If the practitioner uses sampling as a means for selecting items for testing, the practitioner shall: (Ref: Para. A449)

         1.                 Consider the purpose of the procedure and the characteristics of the population from which the sample will be drawn;

         2.                 Determine a sample size sufficient to reduce sampling risk to an appropriately low level; and

         3.                 Select the sample, perform procedures on the items selected, and evaluate the results.

Estimates and Forward–Looking Information

Limited Assurance                                                                                                                                                                                                                                                    Reasonable Assurance
    146L.  In responding to assessed