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Chapter 3 - Risk Assessment and Internal - Coggle Diagram
Chapter 3 - Risk Assessment and Internal
Audit Risk
Risk of Material Misstatement
2 Levels
Misstatement
Components
Inherent Risk
Control Risk
Detection Risk
What is not included?
Assessment of risks - Matter of Professional Judgement
Combined Assessment of RoMMs
SA 315
Scope
Objective
Risk Assessment Procedures
What is included
Information obtained - audit evidence
Understanding the entity and its environment
A continuous process
Internal Control
Meaning
Purpose
Benefits
Limitations
Components
Are all controls relevant to the audit?
Controls over the completeness and accuracy of information
Safeguarding of Assets
Controls relating to objectives that are not relevant to an Audit
Nature and Extent of the Understanding of Relevant Controls
SA 320
Materiality
Materiality - Auditor's Responsibility
Determination of Materiality - A matter of Professional Judgement
Performance Materiality
Determination Materiality and Performance Materiality when planning the audit
Use of Benchmark
Relevant Financial Data
Determining a percentage
Revision in Materiality as Audit Progresses
Documenting Materiality
Materiality and Audit Risk