Audit Risk
Storyboard Text
- Hello Sharif! I still cannot move on from your rendang last month.
- Hi Aminah. I hope you have a very good Hari Raya!
- I really keen of that. We are doing a great job last year. Oh, and also we faced some casualities as well.
- Sadly, because to Covid-19, the audit procedure will be different this year.
- I felt like this year we will have time pressure since some of document cannot be observe online. So the documents should be posted and it takes time for you guys to obtain.
- Oh, what troubling you, Sharif?
- Since I'm new in this field, I still adapting these kind of situation because of covid.
- The auditors meet their ongoing client. The client and Partner greet each other in a familiar sense which concerns the Senior Auditor regarding Auditor Independence.
- We also face some issues.
- The Senior Auditor details how the audit will be different and mainly done offsite. The client raises that they also have had issues this year which raises the issue of going concern for the Audit Team.
- We also afraid of misstatement due to error or fraud that could occur in an assertion and that could be material.
- Okay, noted. We hope that these things did not happen.
- Client raises that the sales revenue has decreased due to exports being hard. Their spoilage has increased due to this which increases the Auditor's concern regarding going concern of the company.
- Please begin the audit as quickly as possible, since we have a number of creditors that rely on our audited financials to keep us afloat. Please let me know if you require any other information.
- Decreased sales are to be expected. The staff are being paid less due to cuts in working hours leading to them being unsatisfied which increase the risk of fraud as employees have reasons to rationalise fraud.
- Client maintained very good controls as seen in the last audit so the Audit Team expects a low control risk. But as the controls are now managed by each section and their manager, the Audit Team identifies risk for Fraud.
- The client leaves after providing access to their internal controls, invoices, director minutes and other audit documents.
- There is no need to be concerned. If we require any further information, we will contact you.
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