AUDIT RISK PROCEDURES

• The auditor should obtain an understanding of the entity, its environment, and its internal control.
• Establishing materiality and evaluating whether the judgment about materiality remains appropriate as audit progresses.
• Considering the appropriateness of the selection and application of accounting policies and adequacy of disclosures.
• Identifying where special audit consideration may be necessary
• Developing expectations for use for analytical procedures.
• Inquiries - towards those charged with governance about the environment in which the FS are prepared
• Inquiries of employees involved in initiating, processing or recording complex or unusual transactions about appropriateness of the selection and application of certain accounting policies.
• In analytical procedures the auditor develops e pectations about plausible (likely) relationship that are resonably expected to exist.
• The susceptibility of an account balance or class of transactions to MATERIAL MISSTATEMENTS, whether as an individual account or in total, IF no related control exist.
• Inherent risk is beyond control of the auditor and generally beyond control of entity
• The auditor must see to it the proper recording of the following are made to the compliance on PSAs; (1) Overall audit strategy, (2) Risk Assessment level, (3) The Audit Plan, (4) Any significant changes