Evaluation Of Audit And Assurance Standards Board

1098 Words May 12th, 2016 5 Pages
The title of the proposed research is as follows; ‘A review of auditors approach to audit risk in the UK’
As defined by the International Auditing and Assurance Standards Board (IAASB) audit risk is ‘The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated’ (IAASB, 2009). The purpose of the auditors is to obtain reasonable assurance that financial statements are prepared in accordance with an applicable financial framework, are free from material misstatements and show a true and fair view of the company. This is to ensure shareholders are able to make rational decisions regarding their investment through reliance on the financial statements. The proposed research would provide a better insight into available rules and procedures designed to aid auditors in the assessment of audit risk, but more importantly, examine their own approaches. It would be interesting to see how companies use their own judgement to identify audit risks, measure their significance and deal with the findings. Additionally, awareness of the process and approaches used by auditors to identify audit risks would enable shareholders to raise their understanding about the accuracy of an audit opinion and so the extent to which it can be relied on.
Literature Review
One of the key sources will be the information on audit risk, the procedures and processes provided on the websites by some of the UK audit companies…
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