Risk Assessment Objective (4) Flashcards
1
Q
What must auditor understand with the entity and its environment (organisational)
A
Entity’s organisational structure, ownership and governance, and its business model
2
Q
What must auditor understand with the entity and its environment (external)
A
Industry, regulatory and other external factors
3
Q
What must auditor understand with the entity and its environment (financial performance)
A
The measures used, internally and externally, to assess entity’s financial performance
4
Q
What must auditor understand with the entity and its environment (accounting policies)
A
IFRS and the entity’s accounting policies
5
Q
What must auditor understand with the entity and its environment (risk)
A
How inherent risk factors affect the suspectibility of assertions to misstatement
