Audit objectives where we undertake a substantive approach

Audit objectives where we undertake a substantive approach

A.1 Description of accounting activities

Our documentation in this section may be in a narrative form using bullet points or paragraphs, or may be documented in a flow chart. The form and content of this documentation is influenced by the nature, size and complexity of the entity and its environment and the availability of information from the entity. The Audit Program may be cross-referenced to suitable documentation of the accounting activities provided by the entity.

For all other documentation considerations, see the guidance in the individual sections below.

Other account balances

Our documentation of accounting activities for those significant account balances that do not result from estimates, and where we are not testing the related classes of transactions, covers the activities over ensuring that the period end account balance is not significantly misstated.

A.2 Substantive audit procedures [KAM

We assess the inherent risk for the audit objective and provide a rationale for the related assessment.  Where we do not evaluate the design and implementation of controls for a particular audit objective, the assessment of RoSM is based on the assessment of inherent risk. [KAM

Effective entity level controls support the risk of significant misstatement assessments. However, deficiencies in entity level controls could undermine the effectiveness of some of the control activities and therefore may require us to amend upwards our assessment of the risk of significant misstatement for some or all audit objectives.

We document substantive audit procedures, which include substantive analytical procedures and/or tests of details. We consider the sufficiency and appropriateness of the substantive audit evidence that is planned to be obtained from substantive analytical procedures before determining the extent of tests of details.

If we decide to test journal entries, we consider whether to include tests of journal entries and other adjustments in the tests of details in this section of the Audit Program.  Journal entries relevant to regular processing of significant accounts are normally documented and tested as part of the audit objectives relating to the relevant significant accounts in the relevant Audit Program. Topside or non-routing journal entries processed during the preparation of the financial statements would normally be considered in the Financial Reporting Audit Program.