Alternative Investments Task Force formed to explore audit evidence.
Due to the increased risk of misstatement inherent with these investments, the Audit Issues Task Force of the Auditing Standards Board established the Alternative Investments Task Force. The task force was charged with providing additional guidance to auditors of investor entities as to how the auditor may obtain sufficient appropriate audit evidence in order to conclude that the financial statements are free of material misstatement. As a result, the Alternative Investments Task Force has developed and issued a practice aid for auditors, Alternative Investments--Audit Considerations. The task force believes that this non-authoritative practice aid will assist auditors in auditing alternative investments. The practice aid includes guidance on:
1. General considerations pertaining to auditing alternative investments.
2. Addressing management's financial statement existence assertion.
3. Addressing management's financial statement valuation assertion.
4. Management representations.
5. Disclosure of certain significant risks and uncertainties.
The practice aid also includes the following Appendixes: Appendix 1: Example Confirmation for Alternative Investments; and Appendix 2: Illustrative Examples of Due Diligence, Ongoing Monitoring and Financial Reporting Controls.
The document can be downloaded at:
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|Title Annotation:||accounting & auditing news|
|Date:||Sep 1, 2006|
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