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Audit Risk Models

In this lecture you will learn about what determines the extent of audit work performed. You will learn about how audits are tailored for different circumstances. The lecture deals with audit risk. The audit risk is the risk that the auditor gets it wrong. First, we need to recognize that an audit provides reasonable assurance, not absolute assurance or a guarantee. Secondly, the opinion states that the financial statements are free of material misstatements, not all statements but material ones. With this understanding in mind, it is entirely possible that the auditor gets their opinion wrong when there are intact one or more material misstatements contained within the financial statements that were not detected during the course of the audit.

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The Audit Evidence

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Auditing: Assessing Inherent Risk

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23 lessons

01
Introduction to Auditing
02
Players in the Audit Industry
03
Generally Accepted Auditing Standards (GAAS) - Overview
04
Auditing Ethics and Rules of Professional Conduct
05
Understanding the Independent Auditors' Report
06
Auditor's Report with Reservations
07
The Auditing Process
08
Auditing: Management Assertions
09
The Audit Evidence
10
Audit Risk Models
11
Auditing: Assessing Inherent Risk
12
Auditing: The Concept of Materiality
13
Auditing: Client Risk Profile
14
How Auditors Document Their Work?
15
Internal Controls in a Company
16
COSO - Integrated Internal Control Framework
17
Assessing Control Risk
18
Testing Internal Controls
19
Auditing Issues in Small Businesses
20
Auditing Planning Approach
21
Audit Programs
22
Auditing the Sales Cycle
23
Substantive Audit Procedures

Topics

Financial Analysis