Page 131 - Auditing Standards

As of December 15, 2017

19 In some companies, internal auditors or others performing an equivalent function contribute to the
monitoring of controls. AS 2605, Consideration of the Internal Audit Function, establishes requirements
regarding the auditor's consideration and use of the work of the internal audit function.

20 See AS 2201.34-.38.

21 Paragraphs .16-.35 of AS 2301, The Auditor's Responses to the Risks of Material Misstatement.

22 AS 2201.B1.

23 AS 2201.22.

24 The entity-level controls included in AS 2201.24 include controls related to the control environment; the

company's risk assessment process; centralized processing and controls; controls over the period-end financial
reporting process; and controls to monitor other controls.

25 See PCAOB Rule 3501(a)(i), which defines "affiliate of the accounting firm."

26 Paragraph .07 of AS 2101, Audit Planning.

27 Analytical procedures consist of evaluations of financial information made by a study of plausible
relationships among both financial and nonfinancial data.

28 Paragraphs .52-.53 of this standard.

29 See also paragraph .29 of AS 2810, Evaluating Audit Results.

30 AS 2401.13.

31 AS 2810.20-.23 establish further requirements for evaluating whether misstatements might be indicative of
fraud and determining the necessary procedures to be performed in those situations.

31A See AS 2401.66-.67A.

32 AS 2301.16-.35.

33 AS 2201.A10 states:

An account or disclosure is a significant account or disclosure if there is a reasonable possibility that the account
or disclosure could contain a misstatement that, individually or when aggregated with others, has a material
effect on the financial statements, considering the risks of both overstatement and understatement. The

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