Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Question

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Answer 1

Question

Chapter 5, Problem 1DQ

To determine

Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Expert Solution & Answer

Explanation of Solution

The objectives of audit risk assessment are to evaluate the internal control system of organisation and assess the risk of material misstatement of the financial statement.

Audit risk assessment helps an auditor to know the current environment and internal control system of organisation and this assessment enables auditor to assess the possible risks and fraud that may likely to occur in financial statements.

Audit engagement can be defined as performance of audit by auditor in which he or she conveys the nature and scope of audit to client. Audit risk assessment shall enable auditor to assess the material risks in internal control system that may affect truthfulness of financial statements. Thus, based upon assessment of audit risk, auditor shall set the tone of audit scope, confirmation from external parties and engagement of auditing staff or simply it can be said for entire audit engagement.

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Answer 2

Question

Chapter 5, Problem 1DQ

To determine

Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Expert Solution & Answer

Explanation of Solution

The objectives of audit risk assessment are to evaluate the internal control system of organisation and assess the risk of material misstatement of the financial statement.

Audit risk assessment helps an auditor to know the current environment and internal control system of organisation and this assessment enables auditor to assess the possible risks and fraud that may likely to occur in financial statements.

Audit engagement can be defined as performance of audit by auditor in which he or she conveys the nature and scope of audit to client. Audit risk assessment shall enable auditor to assess the material risks in internal control system that may affect truthfulness of financial statements. Thus, based upon assessment of audit risk, auditor shall set the tone of audit scope, confirmation from external parties and engagement of auditing staff or simply it can be said for entire audit engagement.

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Answer 3

Question

Chapter 5, Problem 1DQ

To determine

Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Expert Solution & Answer

Explanation of Solution

The objectives of audit risk assessment are to evaluate the internal control system of organisation and assess the risk of material misstatement of the financial statement.

Audit risk assessment helps an auditor to know the current environment and internal control system of organisation and this assessment enables auditor to assess the possible risks and fraud that may likely to occur in financial statements.

Audit engagement can be defined as performance of audit by auditor in which he or she conveys the nature and scope of audit to client. Audit risk assessment shall enable auditor to assess the material risks in internal control system that may affect truthfulness of financial statements. Thus, based upon assessment of audit risk, auditor shall set the tone of audit scope, confirmation from external parties and engagement of auditing staff or simply it can be said for entire audit engagement.

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Answer 4

Question

Chapter 5, Problem 1DQ

To determine

Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Expert Solution & Answer

Explanation of Solution

The objectives of audit risk assessment are to evaluate the internal control system of organisation and assess the risk of material misstatement of the financial statement.

Audit risk assessment helps an auditor to know the current environment and internal control system of organisation and this assessment enables auditor to assess the possible risks and fraud that may likely to occur in financial statements.

Audit engagement can be defined as performance of audit by auditor in which he or she conveys the nature and scope of audit to client. Audit risk assessment shall enable auditor to assess the material risks in internal control system that may affect truthfulness of financial statements. Thus, based upon assessment of audit risk, auditor shall set the tone of audit scope, confirmation from external parties and engagement of auditing staff or simply it can be said for entire audit engagement.

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Answer 5

Chapter 5, Problem 1DQ

To determine

Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Expert Solution & Answer

Explanation of Solution

The objectives of audit risk assessment are to evaluate the internal control system of organisation and assess the risk of material misstatement of the financial statement.

Audit risk assessment helps an auditor to know the current environment and internal control system of organisation and this assessment enables auditor to assess the possible risks and fraud that may likely to occur in financial statements.

Audit engagement can be defined as performance of audit by auditor in which he or she conveys the nature and scope of audit to client. Audit risk assessment shall enable auditor to assess the material risks in internal control system that may affect truthfulness of financial statements. Thus, based upon assessment of audit risk, auditor shall set the tone of audit scope, confirmation from external parties and engagement of auditing staff or simply it can be said for entire audit engagement.

Answer 6

Chapter 5, Problem 1DQ

To determine

Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Expert Solution & Answer

Explanation of Solution

The objectives of audit risk assessment are to evaluate the internal control system of organisation and assess the risk of material misstatement of the financial statement.

Audit risk assessment helps an auditor to know the current environment and internal control system of organisation and this assessment enables auditor to assess the possible risks and fraud that may likely to occur in financial statements.

Audit engagement can be defined as performance of audit by auditor in which he or she conveys the nature and scope of audit to client. Audit risk assessment shall enable auditor to assess the material risks in internal control system that may affect truthfulness of financial statements. Thus, based upon assessment of audit risk, auditor shall set the tone of audit scope, confirmation from external parties and engagement of auditing staff or simply it can be said for entire audit engagement.

Answer 7

Chapter 5, Problem 1DQ

To determine

Discuss the objectives of audit risk assessment and its importance in assessing the chances of fraud may occur. The reason for setting the tone for entire audit engagement by the risk assessment is to be explained.

Answer 8

Expert Solution & Answer

Explanation of Solution

The objectives of audit risk assessment are to evaluate the internal control system of organisation and assess the risk of material misstatement of the financial statement.

Audit risk assessment helps an auditor to know the current environment and internal control system of organisation and this assessment enables auditor to assess the possible risks and fraud that may likely to occur in financial statements.

Audit engagement can be defined as performance of audit by auditor in which he or she conveys the nature and scope of audit to client. Audit risk assessment shall enable auditor to assess the material risks in internal control system that may affect truthfulness of financial statements. Thus, based upon assessment of audit risk, auditor shall set the tone of audit scope, confirmation from external parties and engagement of auditing staff or simply it can be said for entire audit engagement.