Management and Organizational Studies 3363A/B Chapter Notes - Chapter 7: Risk Assessment, Internal Audit, Internal Control

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3363A/B
• Professor: Michelle Loveland

Document Summary

Chapter 7 assessing the risk of material misstatements. Inadequate books and records: assertion level (class of transactions, account balances, and presentation and disclosure) Risk assessment procedures include the following: inquiry with management and others, analytical procedures, observation and inspection, discussion among team members, other risk assessment procedures. Inquiry of management and others: management and others within the entity may have important information for auditors to identify risks of material misstatements. Analytical procedures: helps assess business risk by identifying unusual amounts that may reveal unusual transactions or events having audit implications. Observation and inspection: observation and inspection provide auditors with a basis for understanding internal controls which helps identify risks. Discussions among engagement team members: engagement partners and other key members will discuss the likelihood of the clients. F/s to material misstatement: provides an opportunity for more experienced team members to share insights with other members. Other risk assessment procedures: obtained from external sources.