Business risk approach, Auditing

Business Risk Approach

This approach requires the auditor to determine what are the very important business risks which the client faces. This line of approach both helps the client and also enables the auditor to appreciate and understand his clients business and appreciate all aspects of the business activities. It is then for the auditor to determine where the risks are likely or unlikely and whether the risks are likely to produce serious consequences. This enable the audit to be focussed on those matters where there is a possibility of misstatement. This is the basis of revised auditing standards.

The big firms have largely adopted this approach within their audit methodology.

The history of auditing shows a gradual change over time as detailed testing of transactions moved to system audits. The next development was the audit risk model which focuses the audit and the extent of audit procedures on to the areas of an audit where the auditor was most at risk of giving an inappropriate opinion.

Here we consider concept of risk from the view point of the business as a whole.

Posted Date: 12/3/2012 5:58:50 AM | Location : United States







Related Discussions:- Business risk approach, Assignment Help, Ask Question on Business risk approach, Get Answer, Expert's Help, Business risk approach Discussions

Write discussion on Business risk approach
Your posts are moderated
Related Questions
Audit of Accounting Estimates An accounting estimate is described in ISA 540 Audit of Accounting Estimates as 'an estimation of the amount of an item in the absent of a precis

techniques of vouching

Current Audit File The current audit file might include inter alia: a) A copy of the audited financial statements and any report prepared as a result of audit work carried out

a) Would King & Queen be liable to EFL? Provide specific case references to support your answer.

Please present an analysis of the attached case. Your analysis should be in the form of a memo not to exceed four pages plus appropriate exhibits. The memo should present your

I have some questions in ACL PROGRAME . IF YOU CAN HELP ME

Write a paper (may be real or fictional) involving Accounting and business moral dilemmas. The paper should be 13 pages (double spaced) in accordance with APA guidelines. more des

A municipal village or a nonprofit organization solicits bids for the annual audit from local audit firms, and the firm with the lowest bid is selected. Answer the following que

how EDP audit is carried out

As a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Local Corporation (TLC). In addition, the p