Questions FS-1 through FS-2 may be answered for either the entity as a whole or for any specific account balance or assertion considered material to the financial statements and that is of concern to the reviewer. Account Balance/Assertion Reviewed: Did the auditor gain a sufficient understanding of the entity and its environment, including internal control, to assess the risk of a material GAS 4.03(b); FS-1 misstatement of the financial statements AU 314 (whether due to error or fraud), and to design the nature, timing, and extent of further audit procedures? Does the audit documentation support that the nature, timing, and extent of audit procedures AU 314.103; are consistent with the assessment of auditor’s FS-2 AU risk? [Note: If the auditors did not test internal controls because the risk was assessed at maximum, see question FS-3.] Identification and Evaluation of Audit Findings If the auditor assessed control risk at maximum because the controls were missing or the design of controls was not capable of AU FS-3 preventing, detecting, or correcting material misstatements, did the auditor document the evaluation and disposition of control deficiencies for reporting purposes? If the auditor identified control deficiencies or GAS 3.38, FS-4 instances of noncompliance, did the audit 5.10-.14; AU documentation: 339.14
Questions FS-1 through FS-2 may be answered for either the entity as a whole or for any specific account balance or assertion considered material to the financial statements and that is of concern to the reviewer. Account Balance/Assertion Reviewed: FS-1 Did the auditor gain a sufficient understanding of the entity and its environment, including internal control, to assess the risk of a material misstatement of the financial statements (whether due to error or fraud), and to design the nature, timing, and extent of further audit procedures? GAS 4.03(b); AU 314 FS-2 Does the audit documentation support that the nature, timing, and extent of audit procedures are consistent with the auditor’s assessment of risk? [Note: If the auditors did not test internal controls because the risk was assessed at maximum, see question FS-3.] AU 314.103; AU Identification and Evaluation of Audit Findings FS-3 If the auditor assessed control risk at maximum because the controls were missing or the design of controls was not capable of preventing, detecting, or correcting material misstatements, did the auditor document the evaluation and disposition of control deficiencies for reporting purposes? AU FS-4 If the auditor identified control deficiencies or instances of noncompliance, did the audit documentation: GAS 3.38, 5.10-.14; AU 339.14
qcra1332010.docx