Chapter 3 - Using the audit evidence obtained during previous audit (TOC)

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Using Audit Evidence Obtained in Previous Audits
In determining whether it is appropriate to use audit evidence about the operating
effectiveness of controls obtained in previous audits, and, if so, the length of the
time period that may elapse before retesting a control, the auditor shall consider
the following:
 The effectiveness of other elements of internal control, including the
control environment, the entity‟s monitoring of controls, and the entity‟s
risk assessment process
 The risks arising from the characteristics of the control, including whether it is manual or automated
 The effectiveness of general IT-controls
 The effectiveness of the control and its application by the entity, including
the nature and extent of deviations in the application of the control noted in
previous audits, and whether there have been personnel changes that
significantly affect the application of the control
 Whether the lack of a change in a particular control poses a risk due to
changing circumstances and
 The risks of material misstatement and the extent of reliance on the control.
If the auditor plans to use audit evidence from a previous audit about the
operating effectiveness of specific controls, the auditor shall establish the
continuing relevance of that evidence by obtaining audit evidence about
whether significant changes in those controls have occurred subsequent to
the previous audit.
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