ISAs for Smaller Audits
ISAs do not distinguish the audit approach required for a one-person entity from that required for a multinational entity employing thousands of people. An audit is an audit. Consequently, the basic approach to an audit does not change just because the entity is small. The word “audit” is intended to convey a clear message to […]
Benefits of the Risk-Based Audit
Some of the benefits of the risk-based approach are summarised in the exhibit below. 风险导向性审计方法（risk-based approach）进行审计的一些好处在下面的展览中进行了总结。 Time Flexibility When Audit Work Needs to Be Performed Because risk assessment procedures do not involve the detailed testing of transactions and balances, they can be performed well before the period end, assuming no major operational changes are anticipated. […]
Audit Documentation
Sufficient audit documentation is required to enable an experienced auditor, having no previous connection with the audit, to understand: Audit documentation for a smaller entity is generally less extensive than that for the audit of a larger entity. For example, various aspects of the audit could be recorded together in a single document, with cross-references […]
How to Perform a Risk-Based Audit
A risk-based audit has three key steps, as illustrated below. Risk Assessment Description: Performing risk assessment procedures to identify and assess the risks of material misstatement in the financial statements. This includes the assessment of significant risks, control deficiencies and identified or suspected non-compliance with laws and regulations that will be addressed in the audit […]
Audit Risk
Audit risk is the risk of expressing an inappropriate audit opinion on financial statements that are materially misstated. The objective of the audit is to reduce this audit risk to an acceptably low level. 审计风险是指对有重大误报的财务报表发表不恰当的审计意见的风险。 审计的目的是将这种审计风险降低到一个可接受的低水平。 Audit risk has two key elements, as illustrated below. 审计风险有两个关键因素，如下图所示。 To reduce audit risk to an acceptably low level, […]
