1. Compare and explain the business failure, audit failure and audit risk.
2. List and explain the 4 major sources of auditor's legal liability.
3. Explain what constitutes criminal liability for accountants.
Audit Risk = (Inherent Risk) * (Control Risk) *
(Detection Risk)
We want audit risk to be no greater than
5%.
We assess Inherent Risk as 60% and Control Risk at
20%.
So Detection Risk must be no greater than
……?
Auditors report to the Audit Committee. What are the
qualifications to serve on the Audit Committee?
Audit risk is a function of inherent risk, control risk and
detection risk. Explain Audit risk. Describe the relationships
between all risks and their components?
What is audit risk?
What is the Audit Risk Model?
What are the components of audit risk and how do these relate
to each other?
How does materiality and the audit approach interact with the
Audit Risk Model?
Discuss the need for the audit report. Explain why and how the
format of the audit report changed starting with the reports issued
in 2017. Explain in detail.
Audit risk is the risk that the auditor expresses an
inappropriate audit opinion when the financial
statements are materially misstated. The auditor considers audit
risk when planning and
performing an examination of financial statements in accordance
with auditing standards. In
connection with this, the auditor considers the relevant
assertion level because this directly
assists the auditor to plan the appropriate audit procedures for
those transactions, accounts or
disclosures. The auditor uses the audit risk model as a
framework for assessing...
Audit risk is the risk that the auditor expresses an
inappropriate audit opinion when the financial
statements are materially misstated. The auditor considers audit
risk when planning and
performing an examination of financial statements in accordance
with auditing standards. In
connection with this, the auditor considers the relevant
assertion level because this directly
assists the auditor to plan the appropriate audit procedures for
those transactions, accounts or
disclosures. The auditor uses the audit risk model as a
framework for assessing...
1. Audit risk is the risk that an auditor expresses an
inappropriate audit opinion when the financial statements are
materially stated. Why is the concept of audit risk so important to
auditors and what can they do to reduce it to an acceptably low
level?
2. Gaining an understanding of a client includes auditors
learning how their clients measure their performance. How is this
information used by auditors in audit planning and what are
examples of non-financial performance measures commonly...
a) What are key audit matters? How do these affect the format of
the audit report? (2 marks, maximum 200 words) b) Stewart Jones is
reviewing the results of the subsequent events audit procedures.
Stewart is writing a report for his audit partner based on these
results and will be attending a meeting tomorrow with the partner
and representatives of the company to discuss them. The issue will
be whether the financial report should be amended, or additional
notes included...