31386 paragraphs found
Inherent risk is higher for some assertions and related classes of transactions, account balances, and disclosures than for others. For example, it may be higher for complex calculations or for accounts consisting of amounts derived from accounting …
Control risk is a function of the effectiveness of the design, implementation and maintenance of internal control by management, or where applicable, those charged with governance, to address identified risks that threaten the achievement of the entity’s …
The assessment of the risks of material misstatement may be expressed in quantitative terms, such as in percentages, or in non‑quantitative terms. In any case, the need for the auditor to make appropriate risk assessments is more important than the …
ASA 315 establishes requirements and provides guidance on identifying and assessing the risks of material misstatement at the financial report and assertion …
For a given level of audit risk, the acceptable level of detection risk bears an inverse relationship to the assessed risks of material misstatement at the assertion level. For example, the greater the risks of material misstatement the auditor believes …
Detection risk relates to the nature, timing, and extent of the auditor’s procedures that are determined by the auditor to reduce audit risk to an acceptably low level. It is therefore a function of the effectiveness of an audit procedure and of its …
ASA 300 [21] and ASA 330 establish requirements and provide guidance on planning an audit of a financial report and the auditor’s responses to assessed risks. Detection risk, however, can only be reduced, not eliminated, because of the inherent …
The auditor shall evaluate whether analytical procedures that are performed near the end of the audit, when forming an overall conclusion as to whether the financial report is consistent with the auditor’s understanding of the entity, indicate a …