RSM323H1 Chapter Notes - Chapter 6: Financial Audit, Audit Risk, Enterprise Risk Management
Document Summary
Business risk and the risk of material misstatemetn of the. Effects of information technology on business risk: as business information systems become more integrated and complex, the business processes change and new business risks are introduced that could affect the financial statements, e commerce. Applying an understanding of the business to a critical assessment of. Financial performance analysis: based on previous audit findings and the business risk assessment, the auditor forms expectations about what the financial analysis should discover. Existence (occurrence: the auditor requires evidence that transactions are valid and actually occurred. Completeness: a completeness error exists when a transaction total or account balance is understated, auditors gather evidence that inventory on hand is included, inventory consigned out is included, sales that occurred have been recorded, etc. In a financial statement audit, the cut-off date usually refers to the auditee"s year-end balance sheet date. What i the (cid:862)a e ed ri k of material mi tatement at the a ertion.
