How to Minimise Audit Risk?
Auditors cannot make audit risk zero, but they can reduce it to an acceptably low level by:
1. Good Planning
- Understand the business and its environment.
- Identify high-risk areas early (using analytical procedures and risk assessment).
2. Assessing IR and CR Properly
- Evaluate internal controls.
- Decide which areas need more testing.
3. Designing Appropriate Audit Procedures
- More substantive tests for high-risk areas.
- Larger sample size.
- Use tests of controls where appropriate.
4. Using Experienced Staff & Supervision
- Ensure work is reviewed.
- Use experts when dealing with complex areas (e.g. valuations).
5. Professional Skepticism
- Do not simply trust management.
- Always ask: “Does this make sense?”
Other views
- Plan & delegate the audit with due care
- Auditors selected are competent to perform the audit
- Audit fee should be based on the work done
- Sample selected should represent the population
Tiada ulasan:
Catat Ulasan