Você está na página 1de 2

Audit Process.

Risk BasedAudit Approach


Before traditional approach.
Enron Scandal, in which
auditors are blamed. To lessen
this, approach is adjusted to
risk based audit approach.

3 Phases
Risk Assessment
Risk Response
Reporting

Items important in every


step. Gathering of audit
evidence
Audit Evidence
All information used (not
all available evidence)
Cumulative in Nature
Auditors are not expected
to address all information
available (due to Time
constraint)

Types of Audit Evidence


4 Steps
In performing Risk
Assessment
o Audit Planning
o Assessing the risk of
material
misstatement by
performing Risk
Assessment
Procedures (RAP)
Risk Response
o Determine overall
responses and
perform Further
Audit Procedures
(FAP)
FAP Includes
TOC
Substanti
ve Test
Preparation of Audit
Report (Issue Unqualified,
qualified, adverse, or
disclaimer)

Accounting Records/
Underlying Accounting
Data (Whether recorded
or not)
o Records of Initial
Entries (Journal)
o Supporting Records
(Checks, Invoices &
Contracts)
o Ledgers
o Worksheets
supporting cost
allocation and
computation
Other Information
(Corroborating
Information)
o Minutes of the
Meeting
o Confirmations from
third parties
o Analysts Reports
o Compare Data with
competitor
(Benchmarking)
o Control Manual

2 Important Characteristics
of Audit Evidence
Sufficiency
o Measure of
quantity
Appropriateness
(Competence)
o Measure of quality

Basis of Sufficiency &


Appropriateness Audit
Evidence
Professional Judgement
Professional Skepticism

Additional Basis for


(Sufficiency?)
Risk of Misstatement (The
higher the risk, the higher
evidence is required)
Quality of Audit Evidence
(The higher the quality,
the less evidence is
required)

Additional Basis for


(Appropriateness?)
Relevance
Reliability
(Persuasiveness/ Validity)