BU547 Lecture Notes - Lecture 16: Analytical Review, Audit Risk
Document Summary
The auditor will document observations of the client"s business, relevant industry and environment characteristics, as well as information gathered about the client"s business (e. g. , related parties, extracts from articles of incorporation, bylaws, minutes), and conduct preliminary analytical review. Supported conclusions for each of the risk factors will be included. They are a written record (in either paper or electronic form) providing information collected during the audit, supporting the conclusions reached in the audit opinion, and demonstrating that the audit was conducted in accordance with canadian gaas. The design will reflect clarity of purpose, allowing others to clearly see the work that the auditor has completed so that it can be reperformed if necessary. They will also demonstrate that adequate supervision and review were completed during the audit. Explain the meaning of materiality and describe how it is applied. Explain the risk model and describe each of its components.
