Document ID: chunk:federal_register_of_legislation:F2020L00252:body:0:p32
Version: federal_register_of_legislation:F2020L00252
Segment Type: other
Provision Reference: 
Character Range: 89591–92598

report or determine additional audit procedures to be performed.  Relevant factors in determining what additional audit evidence to obtain about controls at the service organisation that were operating outside of the period covered by the service auditor's report may include:

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           * The effectiveness of the control environment and the user entity's process to monitor the system of internal control monitoring of controls at the user entity.

124.           Existing paragraph A34 is amended to read as follows:

Additional audit evidence may be obtained, for example, by extending tests of controls over the remaining period or testing the user entity's process to monitor the system of internal control monitoring of controls.

125.           Existing paragraph A39 is amended to read as follows:

The user auditor is required to communicate in writing significant deficiencies identified during the audit to both management and those charged with governance on a timely basis.11 The user auditor is also required to communicate to management at an appropriate level of responsibility on a timely basis other deficiencies in internal control identified during the audit that, in the user auditor's professional judgement, are of sufficient importance to merit management's attention.12 Matters that the user auditor may identify during the audit and may communicate to management and those charged with governance of the user entity include:

           * Any controls within the entity's process to monitor the system of internal control monitoring of controls that could be implemented by the user entity, including those identified as a result of obtaining a type 1 or type 2 report;

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Amendments to ASA 500

126.           Existing paragraph A5 is amended to read as follows:

Audit evidence is necessary to support the auditor's opinion and report.  It is cumulative in nature and is primarily obtained from audit procedures performed during the course of the audit.  It may, however, also include information obtained from other sources such as previous audits (provided the auditor has evaluated whether such information remains relevant and reliable as audit evidence for the current audit determined whether changes have occurred since the previous audit that may affect its relevance to the current audit) or a firm's quality control procedures for client acceptance and continuance.  In addition to other sources inside and outside the entity, the entity's accounting records are an important source of audit evidence.  Also, information that may be used as audit evidence may have been prepared using the work of a management's expert.  Audit evidence comprises both information that supports and corroborates management's assertions, and any information that contradicts such assertions.  In addition, in some cases the absence of information (for example, management's refusal to provide a requested representation) is used by the auditor, and therefore, also constitutes audit