31386 paragraphs found
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 [23] 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 is not expected to, and cannot, reduce audit risk to zero and cannot therefore obtain absolute assurance that the financial report is free from material misstatement due to fraud or error. This is because there are inherent limitations of an …
The preparation of a financial report involves judgement by management in applying the requirements of the entity’s applicable financial reporting framework to the facts and circumstances of the entity. In addition, many financial report items involve …
There are practical and legal limitations on the auditor’s ability to obtain audit evidence. For example: There is the possibility that management or others may not provide, intentionally or unintentionally, the complete information that is relevant to …