During an Audit Engagement,the Auditing Standards Require the Auditor to Assess

question 100

Essay

During an audit engagement,the auditing standards require the auditor to assess the risk of material misstatement from errors or fraud.
a.Explain what is meant by the concept of the risk of material misstatement due to errors or fraud.
b.Explain how the auditor performs this risk assessment and uses the information gained from the assessment to (1)plan the audit and (2)to perform the audit.
c.How does the auditor use the audit risk model to reduce audit risk to an acceptably low level at the financial statement level and the assertion level?
d.Evaluate the following statement: "Risk assessment is an element of the audit,but absolutely not the most important element".

---

Definitions:

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm, making them genetically unique from one another.

Self-Defeating Belief

A negative belief one holds about oneself that undermines their success or happiness.

Negative Explanatory Style

A pattern of explaining events with pessimistic causes, often attributing bad outcomes to stable, global, and internal factors, linked to depression and helplessness.

Learned Helplessness

A condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed.