audit risk
identify the audit risk to be considered in planning audit and
Audit risk is outlined as 'the risk that the auditor is Associate in Nursing applicable audit opinion once the money statements ar materially misstated. Audit risk may be a perform of the risks of fabric statement and detection risk'. Hence, audit risk is created of 2 elements – risks of fabric statement and detection risk.
Risk of fabric statement is outlined as 'the risk that the money statements ar materially misstated before audit. This consists of 2 elements... inherent risk ... management risk.'.
samples of audit risks include:
treatment of capital Associate in Nursingd revenue expenditure – the chance here might relate to existence of property plant and instrumentation if revenue expenditure has been capitalized instead of charged as an expense within the operating statement
completeness of liabilities – this might arise if provisions are incorrectly treated as contingent liabilities
completeness of revenue – this might be relevant wherever the entity being audited has important money sales.
valuation of inventory – once, as an example, there ar sizable levels of aged inventory
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