6 paragraphs found
… of financial instruments can reduce exposures to certain business risks, for example changes in exchange rates, interest rates and commodity prices, or a combination of those risks. On the other hand, the inherent complexities of some …
… Business risk and the risk of material misstatement increase when management and … those charged with governance: Do not fully understand the risks of using financial instruments and have insufficient …
… to determine prices; An understanding of how deteriorating business conditions affect the counterparty, as well as whether deteriorating business conditions in entities similar to the counterparty … may not fulfil its obligations (that is, non-performance risk); Policies for adjusting for measurement uncertainties. …
… The internal audit function may assist in identifying the risks of material misstatement due to fraud or error. … quite different from those needed for other parts of the business. The extent to which the internal audit function …
… role to manage and monitor the entity’s exposures to those risks. Management and, where appropriate, those charged with … public sector entities may not have the power to conduct business using derivatives; Established a risk management process relative to the size of the entity …
… procedures undertaken by the auditor can be effective as risk assessment procedures to provide the auditor with information about an entity’s business, they may be less effective as substantive … undertaken routinely, the auditor’s responses to assessed risk, including designing and performing audit procedures, …