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A1- Chap 9: Considering Materiality & Risk - Coggle Diagram
A1- Chap 9: Considering Materiality & Risk
Apply the concept of
materiality
to the
audit
Auditor's responsibility
= determine whether
FS
are
materially misstated
Auditor
will bring
material misstatements
to the
Cus
. =>
corrections
can be made
Make a preliminary judgment about what
amounts to consider material.
Factors affecting Judgment
Benchmarks
Qualitative
Describe the audit risk model and its
components
Aceeptable audit risk:
Control risk: rủi ro mà
Cus
ko phát hiện được sai sót trọng yếu
Inherent Risk: Rủi ro vốn có (bản chất) ko thể thay đổi dù làm bất cứ biện pháp nào. liên quan đến
Cus
Plannned Detection Risk (DR): Rủi ro mà
Auditor
ko phát hiện được sai sót trọng yếu
Use materiality to evaluate audit findings.
Consider the impact of engagement risk on
acceptable audit risk
Consider the impact of several factors on
the assessment of inherent risk
Discuss how materiality and risk are related
and integrated into the audit process
Determine performance materiality during
planning.
Define risk in auditing.
Discuss the relationship of risks to audit
evidence