Normal audit riskIndications 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.