Audit Storyboard
Süžeeskeem Tekst
- Auditor inspects client's documents to identify inherent risks
- Inherent Risks: Hazards faced in cement manufacturing process, Poorly trained workers, Lack of inventories' maintenance, Failure to comply with company's policies and safety guidelines, Inaccurate reporting, Complex accounting or calculations, Possibility of collusion
- Implementing Risk Assessment
- ABC Cement Company
- Auditor visits client's factory to assess internal controls and examine any control's weaknesses
- Finance Manager :We have an Audit Risk Committee that supervise all company financial information..
- Assessing Internal Controls
- CEO : We implement a whistleblowing system in collaboration with third parties to strengthen its independence..
- Auditor:Do you have any internal controls in place?
- Auditor A discuss with Auditor B and conclude detection risk
- Based on auditor’s analysis and judgment, this company’s inherent risk is high, going concern risk is high, control risk is low, which means moderate to high risk of material misstatement, thus auditor will reduce detection risk (low detection risk) and auditor will carry out thorough substantive testing of all transactions.
- Audit Team Meeting:Determining Detection Risk
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