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Audit Processes

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Please describe the relationships between audit risks, the collection of audit evidence, and internal control. Use examples in your discussion.

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Solution Summary

Audit Process is discussed very comprehensively in this explanation.

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AUDIT RISKS:
The risk that there is a misstatement of a financial statement item in the un audited financial statements and the risk that the misstatement will not be detected by the auditor

COLLECTION OF AUDIT EVIDENCE:
This is the information the auditor gathers to assess the claims made by the client's management in the financial statements. The information usually pertains to the value of assets, liabilities and equity of the company. In addition, the audit evidence speaks about the completeness, validity and accuracy of the financial statements.

INTERNAL CONTROL:
The internal control procedures are put in place by the management to assure it that the objectives of the ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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