Respuesta :
The auditor needs to know if the company has a strategy in place for: (a) identifying business risks related to financial reporting objectives; (b) estimating the significance of the risks; (c) evaluating the likelihood of their occurrence; and (d) choosing how to address those risks for the identification of the items of greater audit interest impact and risk assessment of the audit.
What do you mean by Audit Risk Assessment?
The process of identifying and evaluating risks for use in directing the audit procedures that will be required in order to justify the amounts shown in the financial statements is known as audit risk assessment. Identify the dangers of material omissions (plan our work) Create a strategy to deal with those hazards (plan our work) carry out substantive procedures (implement our plan), and evaluate the effectiveness of controls (if planned) Give your opinion (the result of planning and working).
Hence, The auditor needs to know if the company has a strategy in place for: (a) identifying business risks related to financial reporting objectives; (b) estimating the significance of the risks; (c) evaluating the likelihood of their occurrence; and (d) choosing how to address those risks for the identification of the items of greater audit interest impact and risk assessment of the audit.
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