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How to fill out hksa720 form

How to fill out HKSA720?

1. Start by reviewing the specific requirements outlined in the HKSA720 standard. Familiarize yourself with the scope, objectives, and definitions provided.
2. Gather all relevant information and documentation that is necessary for completing the audit. This may include financial statements, relevant legal and regulatory requirements, previous audit reports, and any other supporting materials.
3. Understand the auditor's responsibilities in relation to auditing the accounting estimates in accordance with HKSA720. Ensure that you have a clear understanding of the audit procedures and techniques to be applied.
4. Evaluate the significant risks associated with accounting estimates. Identify any areas that may require additional audit procedures or special attention due to the complexity or subjectivity involved.
5. Assess the reasonableness of key assumptions and judgments made by management in the process of preparing the accounting estimates. This may involve discussions with management or obtaining third-party expert opinions if necessary.
6. Perform substantive procedures tailored to address the assessed risks. This may include analytical procedures, testing the data used in the accounting estimates, or performing additional procedures to obtain sufficient appropriate audit evidence.
7. Document all audit evidence obtained and the conclusions reached. Ensure that the documentation is sufficient, appropriate, and supports the auditor's opinion on the financial statements.

Who needs HKSA720?

1. Professional auditors and audit firms in Hong Kong who are responsible for conducting audits of financial statements.
2. Companies and organizations in Hong Kong that are subject to audit requirements under applicable laws and regulations, or that voluntarily opt to have their financial statements audited.
3. Stakeholders and users of financial statements who rely on accurate and reliable information, including investors, creditors, government agencies, and other interested parties.

It is important to note that the need for HKSA720 may vary depending on the specific circumstances of each audit engagement and the requirements imposed by relevant authorities.

For pdfFiller’s FAQs

What is hksa720?

hksa720 is a Hong Kong Standard on Auditing that deals with the auditor's responsibility in the audit of financial statements.

Who is required to file hksa720?

Auditors who are conducting audits of financial statements in Hong Kong are required to follow hksa720.

How to fill out hksa720?

hksa720 should be filled out according to the guidelines provided in the standard, ensuring that all audit procedures and responsibilities are properly documented.

What is the purpose of hksa720?

The purpose of hksa720 is to establish standards on the auditor's responsibilities in an audit of financial statements, ensuring the audit is conducted in accordance with relevant ethical requirements.

What information must be reported on hksa720?

hksa720 requires the auditor to report on the audit of financial statements, including the auditor's opinion on whether the financial statements are presented fairly, in all material respects.

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