2- internal control standards Flashcards Preview

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Flashcards in 2- internal control standards Deck (5)
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1

auditor responsibility
an auditor should asses rmm at the

financial statement level
relevant assertion level

2

when assessing the risk of RMM the auditor must take into account

auditor responsibility
internal control considerations
significant risks
risks for which substantive procedures alone do not provide sufficient appropriate audit evidence
revision of risk assessment

3

overall response to assessing rmm at the f/s level

auditor may assign more experienced staff
provide closer supervision
assign specialists
more unpredictable audit procedures
make changes in nature timing extent of procedures etc

may change auditors approach and use a more substantive or reliant approach or combined approach

4

overall response to assessing rmm at the assertion level

the assessment of the rmm may affect auditors decision of nature, timing extent of further audit procedures

5

nature
timing
extent

nature-refers to the purpose of further audit procedures (substantive or test of controls) and type (inspection, observation, inquiry etc)

timing-when the procedures are performed (before yr end-interim or year end) year end is usually more effective with a higher risk of ram

extent-quantity of audit procedure to be performed (ex sample size). caats (computer assisted audit techniques) can be very effective in this area.