Normal audit risk, Auditing

Normal audit risk
Indications that an audit is a normal risk audit are:

(1) The client having management and staff who are competent and have integrity;

(2) Where the client has an accounting system that is well designed, works and is subject to strong internal controls;

(3) Where the client has no special financial problems;

(4) The auditor's past experience;

(5) Where the client is old, well established and the business of the entity is not subject to rapid change;

(6) If the client's board of directors are actively engaged in the company and they provide control and leadership of a good quality;

(7) If the board of directors has competent non-executive directors;

(8) If the organization has an audit committee.

When the auditor is faced with the normal audit risk, the audit approach adopted is usually one of reliance on key controls supported by substantive tests, compliance tests and analytical review.

Posted Date: 12/3/2012 5:49:33 AM | Location : United States







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

Write discussion on Normal audit risk
Your posts are moderated
Related Questions
what is the nature and scope of forensic auditing?

Questionable Payments In some countries, business is often gained by bribing ministers or public officials or officers of companies or firms with whom one wishes to do business

Procedures followed in Conducting an Audit Procedures generally followed in conducting an audit by more than one firm of accountants and the division of work between them.


Advantage and Disadvantage of Judgmental Sampling The advantages of judgment sampling The approach is understood as well and has been refined through experience o

You are auditing Pell grant provided to students at six state universities. The Pell grant program is a federal financial aid program for college students. The maximum grant a stud

project report on absorption of overhead and its different method

Why is studying Auditing different from studying other accounting topics?

postage stamps 220 currency and coins 1156.60 how much petty cash fund shall be shown as part of cash balance

An internal audit is one which is conduct by the internal auditors of the company. It is not mandatory for the company and the company just conducts it to keep a check on the opera