SAS 109 Requires Auditors to Obtain Sufficient Knowledge of the Organization's

question 112

Essay

SAS 109 requires auditors to obtain sufficient knowledge of the organization's risk assessment procedures to understand how management identifies,prioritizes,and manages financial reporting risk.List five circumstances that can cause risks to arise or change.

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Definitions:

Assessment

The process of evaluating or measuring a person's behavior, abilities, or psychological attributes.

Test's Reliability

The consistency of a test in measuring what it is intended to measure across different occasions.

Reliability

Reliability refers to the consistency and dependability of a measurement, test, or instrument in yielding similar results under consistent conditions.

Test Items

Questions or tasks designed to measure knowledge, skills, abilities, or other attributes.