BUS 111W Lecture Notes - Lecture 4: White Top, Pearson Education, Audit Risk
8 Nov 2017
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Answer: the need for independence from clients. Independence permits auditors to remain unbiased in drawing conclusions about their clients" financial statements: the importance of a structure to encourage competence. The ability of the structure to encourage competence permits auditors to conduct audits and perform other services efficiently and effectively: the increased litigation risk faced by auditors. Firms continue to experience increases in litigation-related costs from lawsuits. Some organizational structures afford a degree of protection to individual firm members. : 6-1 understand why risk assessment in planning is essential. List the steps involved in developing a client risk profile. Answer: the client risk profile allows the auditor to assess the client"s business risk and provides the information needed to effectively plan the audit. It is july and your firm has just been appointed as the auditor for the september year-end audit. The previous auditing firm had conducted review engagements.
