Professional Documents
Culture Documents
BUSINESS RISK
In contrast to audit risk, it is the
auditors risk of loss or injury from events
arising in connection with financial
statements that have been reported on
and on which auditors has issued an
appropriate opinion.
Inherent Risk
Control Risk
Detection Risk
Risk Assessment
Procedure
These includes:
1. Inquiries of management and
others within the entity
2. Analytical procedures
3. Observation and inspection
ANALYTICAL PROCEDURES
Steps in applying analytical
procedures:
Step 1: Develop expectations
regarding financial statements
Step 2: Compare expectations with the
financial statements under audit
Step 3: Investigate significant
differences
Analytical Procedures in
planning an audit