Audit and Accounting

Audit Firm Accounting Firms Identifying the risks of material misstatement, non-compliance and non-compliance within a specific industry must be approached in the same way as any other audit – by gaining a proper understanding of the company and its environment. Provided the staff have the requisite competencies described above, this should not be a problem. CPA firms may have additional resources to support audit team members assigned to specific industry clients. There may be internal information notices or technical guidance on how accounting standards should be applied in the industry. For example, when auditing clients in the banking sector, the audit firm may provide guidance on the application of specific IFRS® standards to the classes of financial instruments normally held by banks. Assurance staff can then refer to this guide in performing their assurance engagements, particularly when identifying risks of material misstatement. It is also important to remember that while i...