Chapter
Risk Assessment and Internal Control
Auditing and Ethics
24 topics
- Audit Risk
- Risk of Material Misstatement, Inherent Risk and Control Risk, Detection Risk
- Sampling and Non-Sampling Risk
- Concept of Materiality, Materiality in Planning and Performing an Audit
- Auditor’s responsibility to apply the concept of materiality
- Auditor’s determination of materiality is a matter of professional judgement
- Materiality and Audit Risk
- Application of materiality in planning and performing the audit
- Concept of Performance materiality
- Determining materiality and performance materiality when planning the audit
- Use of Benchmarks in determining materiality for the financial statements as a whole
- Materiality level or levels for particular classes of transactions, account balances or disclosures
- Revision in materiality as the audit progresses
- Documenting the Materiality. (SA 320 Materiality in Planning and Performing an Audit)
- Identifying and Assessing the Risk of Material Misstatement, Risk Assessment procedures
- Understanding the entity and its environment
- Internal control
- Documenting the Risks
- Evaluation of internal control system
- Testing of Internal control
- Internal Control and IT Environment (SA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment)
- Digital Audit: Key features, Impact of IT related Risks, Impact on Controls, Internal Financial Controls as per Regulatory requirements, Types of Controls, Audit approach
- Digital Audit: Understanding and documenting Automated environment, Testing methods, data analytics for audit, assessing and reporting audit findings
- Overview and Introduction: The Auditor’s Responses to Assessed Risks-SA 330