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SAS: Discuss the three procedures that SAS 109 defines

Auditors have the responsibility to be familiar with the particular Statements on Auditing Standards (SAS) issued by the Auditing Standards Board that are applicable to each individual audit. Discuss the three procedures that SAS 109 defines in the risk assessment of a potential client. How does each one provide independent, relevant, and direct evidence to provide adequate and sufficient evidence to reach a conclusion?

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Statements on Auditing Standards (SAS)

Auditors have the responsibility to be familiar with the particular Statements on Auditing Standards (SAS) issued by the Auditing Standards Board that are applicable to each individual audit. Discuss the three procedures that SAS 109 defines in the risk assessment of a potential client. How does each one provide independent, relevant, and direct evidence to provide adequate and sufficient evidence to reach a conclusion?
Three procedures requires by SAS 109 are to (1) complete risk assessment procedures, (2) understand the entity and its business and reporting environment, and (3) have the audit team assess how vulnerably the financial statements are to material misstatement. Some examples of how you would complete these procedures are discussed below.

(1) Risk ...

Solution Summary

Your tutorial is 364 words and gives you the three procedures and a reference. Examples of the activities needed in each procedure are given. The discussion then explains that risk assessment is not evidential matter, it is determining the extent of evidence needed.

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