You must have Credits on your Balance to download this sample
The effective steps for risk assessment to identify the risks regarding the misstated data in the financial records
Finance & Accounting
Pages 8 (2008 words)
It is necessary for the auditor to perform effective steps for risk assessment to identify the risks regarding the misstated data in the financial records, the affirmation level and auditor should use the analytical procedures for the risk assessment (ISA/HKSA 315(6b)).
Such analytical procedures which are applied in non-audit engagements are not sheltered by the ISAs. Defining the Analytical Procedures The analytical procedures can be described as ‘evaluating the financial records by analyzing the credible relationship between the financial records and non-financial records’. It can be also included that ‘such analysis is mandatory to identify the difference or inconsistency of relevant data or the difference between provided data and the estimated values’ (ISA/HKSA 520(4)). The basic principle to apply the analytical procedures is the expected existence of the credible relationship may occur and the analytical procedures may carry on in such circumstances in the non-appearance of the opposite factors. Defining the purposes Auditors use analytical procedures in the entire audit course to achieve the three main purposes of audit: 1) Preliminary analytical review These are the introductory analytical reviews, which assist the auditors to get an idea about the business and industry. They can start with reviewing the previous financial records, performance of industry and the competitors. ...
Not exactly what you need?