Internal Contol

STATEMENT OF AUDITING STANDARDS 300 AUDIT RISK ASSESSMENTS AND ACCOUNTING AND INTERNAL stop SYSTEMS | Introduction| 1.| The purpose of this Statement of canvasing Standards (SAS) is to establish standards and provide management on obtaining an understanding of the bill and internal control dodgings and on analyse jeopardize and its components: inherent risk, control risk and detection risk.| 2.| The auditors should obtain an understanding of the accounting and internal control systems able to plan the audit and develop an effective audit approach. The auditors should engage professional judgement to assess audit risk and to build audit procedures to ensure it is reduced to an acceptably low level. (SAS 300.1)| 3.| Audit risk means the risk that the auditors give an inappropriate audit opinion when the financial statements are materially misstated. Audit risk has three components: inherent risk, control risk and detection risk.| 4.| inbred risk is the susceptibility of an account quietus or family unit of proceeding to misstatement that could be material, individually or when aggregated with misstatements in another(prenominal) balances or classes, assuming that there were no cerebrate internal controls.| 5.

| Control risk is the risk that a misstatement that could drop dead in an account balance or class of transactions and that could be material, individually or when aggregated with misstatements in other balances or classes, would not be prevented or detected and correct on a timely basis by the accounting and internal control systems.| 6.| Detection risk is the risk that the auditors hearty procedures would not detect a misstatement that exists in an account balance or class of transactions that could be material, individually or when aggregated with misstatements in other balances or classes.| 7.| Accounting system means the series of tasks and records of an entity by which transactions are affect as a means of maintaining... If you want to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!