Paragraph 4: Specific risk controls during the engagement

The professional practice standard relating to the consideration of the possibility of fraud when auditing accounts, approved by the Minister of Justice, is shown below: . NEP-240. Consideration of the possibility of fraud when auditing accounts Introduction 01. In planning and performing the audit, the auditor identifies and assesses the risks of material misstatement of the accounts and designs audit procedures in response to that assessment. Such misstatements may result…

The professional practice standard relating to the recognition of the risk of material misstatement of the financial statements resulting from non-compliance with legal and regulatory texts, approved by the Minister of Justice, is shown below: ACCOUNTING FOR THE RISK OF MATERIAL MISTAKINGS IN THE ACCOUNTS RESULTING FROM NON-COMPLIANCE WITH LEGAL AND REGULATORY TEXT Introduction 1. The entity is subject to laws and regulations, non-compliance with which may lead to material…

The professional practice standard relating to the assessment of accounting estimates, approved by the Minister of Justice, is set out below: PROFESSIONAL PRACTICE STANDARD RELATING TO THE ASSESSMENT OF ACCOUNTING ESTIMATES Introduction 1. Some items in the accounts cannot be measured precisely and can only be estimated. These estimates may result in a risk that the accounts contain material misstatements. 2. The purpose of this standard is to set out…

The professional practice standard relating to going concern, approved by the Minister of Justice, is shown below: NEP-570. GOING CONCERN Introduction 1. In preparing its accounts, an entity is presumed to be continuing in business. These are prepared on a going concern basis. 2. The purpose of this standard is to define the audit procedures that the statutory auditor performs to: – assess whether the preparation of the financial statements…

The professional practice standard relating to the audit of the opening balance sheet of the first financial year certified by the statutory auditor, approved by the Minister of Justice, is shown below: NEP-550. Relationships and transactions with related parties Introduction 01. Many related party transactions are part of the entity’s ordinary activities and do not present a greater risk of material misstatement than transactions of a similar nature with unrelated…