Audit evidence to draw reasonable conclusions on which to base the auditor’s opinion is obtained by performing:
(a) Risk assessment procedures; and
(b) Further audit procedures, which comprise:
Test of controls, when required by the SAs or when the auditor has chosen to do so; and
Substantive procedures, including tests of details and substantive analytical procedures.
Risk assessment procedures refer to the audit procedures performed to obtain an understanding of the entity and its environment, including the entity’s internal control, to identify and assess the risks of material misstatement, whether due to fraud or error, at the financial statement and assertion levels.
For CA Inter & Final Classes, checkout EDU91
CA Final Classes: https://www.edu91.org/s/pages/ca-final
ACCA Classes: www.learn91.com
Get Affordable CA Inter & Final Classes with high value-added services.
Thanks for listening to the podcast “Audit By Neeraj”. Subscribe for free to receive new Audit Podcasts.
Listen to more podcasts-