Vous êtes sur la page 1sur 2

AS1101 and AS2101 Summary

AS 1101: Audit Risk


The auditor is expected to express his opinion on financial statement for which he has to plan
and perform the audit to obtain reasonable assurance .The audit report states that the auditor
obtains reasonable assurance whether the financial statements are free from material
misstatement. The term reasonable assurance in forms the reader that there is some level of risk
that the audit did not detect all material misstatements. In addition, the auditors opinion
commonly uses the wording that the financial statements present fairly, in all material respects.
These phrases communicate to third parties that the audit report is limited to material
information. There are two type of risk in material misstatement. Inherent risk and control risk.
The risk posed by an error or omission in a financial statement due to a factor other than a failure
of control. It occurs when the transactions are complex. Control risk is the probability that a
material misstatement exists in an assertion because that misstatement was not either prevented
from entering entitys financial information. Detection risk is the risk that the auditor will
conclude that no material errors are present when in fact there are. It is the responsibility of the
auditor to reduce detection risk to an acceptably low level which basically mean that only by
lowering the detection risk auditor can reduce audit risk where audit risk means the risk that
auditor may express inappropriate audit opinion.

AS 2101: Audit Planning


In order perform his work effectively, auditor has to plan his auditing work as per the standard
described in auditing standards. The auditor should Performing procedures required, regarding
the continuance of the client relationship and the specific audit engagement; evaluating
compliance with relevant ethical requirements and establishing an understanding of the terms of
the engagement. The auditor's consideration of client continuance and relevant ethical
requirements, including independence, occurs throughout the audit engagement as conditions and
changes in circumstances occur. Performing initial procedures on both client continuance and
evaluation of relevant ethical requirements at the beginning of the current audit engagement
means that they are completed prior to the performance of other significant activities for the
current audit engagement. The auditor should establish an overall audit strategy that sets the
scope, timing, and direction of the audit and that guides the development of the audit plan,
identify the characteristics of the engagement that define its scope; ascertain the reporting
objectives of the engagement in order to plan the timing of the audit and the nature of the
communications required, consider the factors that, in the auditor's professional judgment, are
significant in directing the engagement team's efforts, consider the results of preliminary
engagement activities and, when applicable, whether knowledge gained on other engagements
performed by the engagement partner for the entity is relevant and ascertain the nature, timing,
and
extent
of
resources
necessary
to
perform
the
engagement.
The auditor should develop an audit plan that includes a description of the following the nature
and extent of planned risk assessment procedures, Understanding the Entity and Its environment

and Assessing the Risks of Material Misstatement, The nature, timing, and extent of planned
further audit procedures at the relevant assertion level, Performing Audit Procedures in Response
to Assessed Risks and Evaluating the Audit Evidence Obtained, Other planned audit procedures
that are required to be carried out so that the engagement complies with generally accepted
auditing standards, The auditor should update and change the overall audit strategy and audit
plan, as necessary, during the course of the audit, The auditor should plan the nature, timing, and
extent of direction and supervision of engagement team members and the review of their work.