Document ID: chunk:federal_register_of_legislation:F2021C01250:reg:27:p21
Version: federal_register_of_legislation:F2021C01250
Segment Type: reg
Provision Reference: reg 27 (pt 21/23)
Character Range: 66360–69581

as the following may influence whether to perform substantive  procedures at an interim date:

           * The control environment and other controls.

           * The availability at a later date of information necessary for the auditor's procedures.

           * The purpose of the substantive procedure.

           * The assessed risk of material misstatement.

           * The nature of the class of transactions or account balance and related assertions.

           * The ability of the auditor to perform appropriate substantive procedures or substantive  procedures combined with tests of controls to cover the remaining period in order to reduce the risk that misstatements that may exist at the period end will not be detected.

A59.         Factors such as the following may influence whether to perform substantive analytical  procedures with respect to the period between the interim date and the period end:

           * Whether the period end balances of the particular classes of transactions or account balances are reasonably predictable with respect to amount, relative significance, and composition.

           * Whether the entity's procedures for analysing and adjusting such classes of transactions or account balances at interim dates and for establishing proper accounting cut-offs are appropriate.

           * Whether the information system will provide information concerning the balances at the period end and the transactions in the remaining period that is sufficient to permit investigation of:

             (a)                Significant unusual transactions or entries (including those at or near the period end);

             (b)                Other causes of significant fluctuations, or expected fluctuations that did not occur; and

             (c)                Changes in the composition of the classes of transactions or account balances.

Misstatements detected at an interim date (Ref: Para. 23)

A60.         When the auditor concludes that the planned nature, timing, or extent of substantive procedures covering the remaining period need to be modified as a result of unexpected misstatements detected at an interim date, such modification may include extending or repeating the  procedures performed at the interim date at the period end.

Adequacy of Presentation of the Financial Report (Ref: Para. 24)

A61.         Evaluating the appropriate presentation, arrangement and content of the financial report, includes, for example, consideration of the terminology used as required by the applicable financial reporting framework, the level of detail provided, and the basis of amounts set forth.

Evaluating the Sufficiency and Appropriateness of Audit Evidence (Ref: Para. 25-27)

A62.         An audit of a financial report is a cumulative and iterative process.  As the auditor performs planned audit procedures, the audit evidence obtained may cause the auditor to modify the nature, timing or extent of other planned audit procedures.  Information may come to the auditor's attention that differs significantly from the information on which the risk assessment was based.  For example:

           * The extent of misstatements that the auditor detects by