Professional Documents
Culture Documents
Illustration 5.2
Professor Md. Zakir Hosen ACA 6
Evaluate the clients background and reasons for the
audit
Evaluate governance, internal controls and possible risks with client's
management and staff including
Changes in management, organizational structure, and activities of
the client.
Current government regulations
Current business developments
Current or impending financial difficulties or accounting problems.
Susceptibility of the entity’s financial statements to material
misstatement due to error or fraud.(BSA 240 & BSA 315)
Existence of related parties. (BSA 550)
New or closed premises and plant facilities.
Recent or impending changes in technology, types of products or
services and production or distribution methods.
Changes in the accounting system and the system of internal control.
Illustration 5.3
Professor Md. Zakir Hosen ACA 9
Ability to Meet Audit Team Ethics and Competence