COMM 455 Chapter Notes - Chapter 3: Tral, Information System, Rectify
Document Summary
Cas 300: an auditor plan their audit to reduce audit risk to an acceptably low. Audit risk: risk that auditor issues an unmodified opinion when f/s are materially misstated. Efficiency: amount of time spent gathering audit evidence. Involves: understand entity, environment, identify factors that may impact risk of material misstatement, performing an audit risk and materiality assessment, significant risks, determine audit strategy nature and timing of procedures. Plan where to spend more time where risks greatest performed. Sets the scope, timing, directions of audit and provides the basis for developing a detailed audit plan: adequacy of closing procedures and associated risks. Conclusion: based on evidence, arrive at opinion regarding fair presentation of f/s. Reporting stage: evaluating the results of the detailed testing in light of the auditor"s understanding of their client and forming an opinion on the fair presentation of the clients" financial statements. 3. 2 gaining an understanding of the client. Make reasonable preliminary risk assessment, assess planning materiality.
