Audits conducted in accordance with ISAs must follow the risk‑based approach. Auditors should direct audit work to the key risks (sometimes also described as significant risks), where it is more likely that errors and fraud will lead to a material misstatement in the financial statements. It would be inefficient to address insignificant risks in a high level of detail.
During this webinar I will discuss a 10-point plan for auditors to identify and address the different components of risk during an audit of financial statements. I will also explain which type of audit procedures should be performed to address the different components of risk.
Audit risk
Inherent risk
Control risk
Fraud risk
Detection risk
Significant risks
Presumed risks
Business risks
Risk of material misstatement (ROMM)
Desired audit risk
What does all these terms mean and how does it fit into a risk-based audit approach?
All auditors and their staff who is responsible for the audit of financial statements
