Explain about the audit risk, Financial Management

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Audit risk

  • Obtain understanding of accounting and internal control systems.
  • Sufficient to plan audit and develop effective audit approach.
  • Professional judgement to assess "audit risk "components.
  • Design procedures to ensure it's reduced to an acceptable low level.

"Audit risk": risk that auditor may give an inappropriate opinion on financial statements. Also called the "ultimate risk"

 

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