Revenue net assets the nature the entity

include:
•whether it is obtained from independent sources outside the entity
•whether, for internally generated audit evidence, the related controls imposed by

the entity are effective
•whether it is obtained directly by the auditor (for example, observation of the

reliable than audit evidence provided by photocopies or facsimiles).

4.11

financial performance users may tend to focus on profit, revenue or net assets) •the nature of the entity, where the entity is in its life cycle, and the industry and

economic environment in which the entity operates
•the entity’s ownership structure and the way it is financed (for example, if an entity

documentation are:
•to provide evidence of the auditor’s basis for a conclusion about the achievement of

the overall objective of the auditor
•to provide evidence that the audit was planned and performed in accordance with

1

ACG510 Self Study Questions

4.23
The junior audit team member’s conclusion is not correct. Sufficient appropriate audit evidence has not been obtained in relation to the accuracy, valuation and allocation assertion. Further procedures will be needed to specifically cover the value of existing assets; for example, testing for indicators of impairment.

2

(b)Due to the increased overall risk, the preliminary materiality for 2018 would be lower