Quality-control reviews by accounting bodies, ASIC’s audit-inspection program, corporate restatements and frauds indicate that the basics of risk-based auditing need more emphasis. A proper understanding of the key requirements of risk-based standards is essential to an efficient, effective and compliant audit. This session will focus on:
- The risks that auditors have not appropriately identified, assessed and responded to
- Identifying and assessing the risks of material misstatement
- Materiality in planning and performing an audit
- How auditors should respond to assessed risks, and
- Examples of the application of risk-based practice to financial reporting assertions.