Assessment of the Internal Control System and Information Collected by the Audited Unit
Assessment of Internal Control Systems and Collected Information of the Audited Entity
How is the assessment of internal control systems and collected information of the audited entity conducted? What are the regulations regarding the identification and assessment of risks of material misstatement in the audit?Evaluation of Internal Control System and Collected Information of the Audited Entity
Based on Article 7 of the Regulation on Procedures for Preparing, Appraising, Reviewing, and Issuing the Overall Audit Plan, issued together with Decision 03/2021/QD-KTNN, regarding the evaluation of the internal control system and collected information of the audited entity as follows:
Based on the results of the survey and collection of information regarding the internal control system of the audited entity, the Head of the Audit Team shall organize the evaluation of the internal control system and collected information in accordance with the State Audit Standards, State Audit Procedures, and the audit guidelines applicable to the audit field.
Identification and Assessment of the Risk of Material Misstatement in the Audit
Based on Article 8 of this Regulation, the identification and assessment of the risk of material misstatement in the audit are regulated as follows:
Based on the collected information and the results of analysis and evaluation of the information about the audited entity, the Head of the Audit Team shall organize the identification and assessment of the risk of material misstatement in accordance with the State Audit Standards, State Audit Procedures, Guidelines for the Risk-Based Audit Approach and Determining Materiality, and the audit guidelines applicable to the audit field.
Sincerely!
