Explain audit risk model and its components of risks
Course:- Auditing
Reference No.:- EM13860372

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Part A:

1) How would an auditor normally obtain sufficient appropriate audit evidence regarding the [assertion] and condition of [account balance (i.e. assets in financial statement)]?

2) There are two types of sampling risk, one for test of controls, the other involving substantive testing. For each of the tests, explain what the risks are?

3) Define each components of the audit risk model; explain how each component is set; and which components make up the risk of material misstatement.

Outline the factor that influence he selection of audit procedures.

4) Explain what are the major considerations that an auditor should take into account in determining what level of substantive testing should be carried out?

5) Explain why auditors use assertion as a focal point of the audit?

Part B:

6(a).Explain audit risk model and its components of risks. For substantive testing, what affect auditor in deciding the extent and time of carrying the audit procedures when considering these risks.

6(b) Describe factors that impact on an auditor's decision when considering the type of audit procedures to be performed and how will this impact on testing?

7(a) Explain the importance of the date of the auditor's report and responsibilities in respect to events after financial reporting date and what types of events will be considered by auditor and the impact on financial report

7.(b) List of Audit opinions and discuss each opinion and its application.

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