Document ID: chunk:federal_register_of_legislation:F2023C01130:body:0:p21
Version: federal_register_of_legislation:F2023C01130
Segment Type: other
Provision Reference: 
Character Range: 63672–66871

what may have changed from previous periods.

           * The integrity and ethical values of management and those charged with governance, which may also be relevant to the auditor's understanding of the control environment.

           * The applicable financial reporting framework and its application to the nature and circumstances of the entity.

Other Relevant Sources

A38.         Other relevant sources of information include:

           * The auditor's procedures regarding acceptance or continuance of the client relationship or the audit engagement in accordance with ASA 220, including the conclusions reached thereon.[25]

           * Other engagements performed for the entity by the engagement partner.  The engagement partner may have obtained knowledge relevant to the audit, including about the entity and its environment, when performing other engagements for the entity.  Such engagements may include agreed-upon procedures engagements or other audit or assurance engagements, including engagements to address incremental reporting requirements in the jurisdiction.

Information from the Auditor's Previous Experience with the Entity and Previous Audits (Ref: Para. 16)

Why information from previous audits is important to the current audit

A39.         The auditor's previous experience with the entity and from audit procedures performed in previous audits may provide the auditor with information that is relevant to the auditor's determination of the nature and extent of risk assessment procedures, and the identification and assessment of risks of material misstatement.

Nature of the Information from Previous Audits

A40.         The auditor's previous experience with the entity and audit procedures performed in previous audits may provide the auditor with information about such matters as:

           * Past misstatements and whether they were corrected on a timely basis.

           * The nature of the entity and its environment, and the entity's system of internal control (including control deficiencies).

           * Significant changes that the entity or its operations may have undergone since the prior financial period.

           * Those particular types of transactions and other events or account balances (and related disclosures) where the auditor experienced difficulty in performing the necessary audit procedures, for example, due to their complexity.

A41.         The auditor is required to determine whether information obtained from the auditor's previous experience with the entity and from audit procedures performed in previous audits remains relevant and reliable, if the auditor intends to use that information for the purposes of the current audit.  If the nature or circumstances of the entity have changed, or new information has been obtained, the information from prior periods may no longer be relevant or reliable for the current audit.  To determine whether changes have occurred that may affect the relevance or reliability of such information, the auditor may make enquiries and perform other appropriate audit procedures, such as walk-throughs of relevant systems.  If the information is not reliable, the auditor may