Questions On Risk Assessment Process Essay

CAS 300 requires auditors to their audit using a risk based model where the nature, timing and extent of audit procedures are based on the assessed risk of material misstatement. Pickett (2006) argues that for audits to be effective and efficient, much of the audit effort should be focused on areas that are considered to pose the highest audit risk. Additional audit procedures should be linked to individual audit assertions whereas other audit procedures need to be performed as and when needed. Thus, for an audit plan to be put in place, it is necessary for an auditor to come up with a risk profile of the client comprising an understanding of the business operating by the audit client, assess business risk and also perform its preliminary analytical review.

#3. Inherent Risk Factors; audit planning decisions. Businesses that face extreme competition are susceptible to many inherent risk factors – the measurement of the auditor’s assessment of the likelihood that there are material misstatements in an account balance before considering the effectiveness of internal control. Complex valuation issues and related party transactions are two such factors that would affect audit planning decisions. Valuation issues may lead the audit team to request more evidence, if they choose to accept the audit at all. Risks such as inventory turnover leading to potential misstatements of inventory, costs of goods sold, or obsolescence of inventory may influence the audit firm’s decision to hire outside specialists to assist in the audit. Another inherent risk factor, client business risk (competitive

Safety checks should be carried out to eliminate the risk of putting the safety of people attending a sporting event at risk.

There are four stages in this audit. The first stage is the planning and risk assessment. This stage of the audit is completed during the initial planning. The risks for Smackey Dog Foods, Inc. can be better identified by understanding the business, its industry, environment, management culture, the type of accounting used, and the competition. The auditors should be able to understand why Smackey’s sales are steadily increasing and its competitors sales are declining. To be more specific, the implementation and design of Smackey’s internal control procedures, processes, and systems are studied and analyzed for the audit team to be able to assess the control risk for each of the transaction related audit objectives, which are accuracy, occurrence, classification, completeness, summarization, and timing and posting.

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

risk assessment should be carried out so that any potential risks to health and safety can

The risk assessment tradition according to Walker is what is relied upon to make any predictions on future criminal behavior for an offender. He mentions the importance of what factors a risk assessment should include such as personality, substance abuse, and relationship with others (2015, p. 82-84). All of these factors in the risk assessment test can help make a prediction and allows decisions made by judges or the courtroom workgroup to be a bit more accurate according to what offenders score on assesssments. The individual’s criminal history alone should not be the only think a judge should look at when making a decision. The risk assessment is often used to determine things such as the sentencing, if they should be on probation or not

The community has not been significantly affected by the COPR – containing soils. “The property values have been kept intact and the businesses on affected properties have continued to operate” (Paustenbach, 2002, p.1). When the COPR was ub the process of disposal, there was little or no concern for the environmental and human health risks that would occur as a result of the distribution of COPR outside the plant.

Risk Assessment - The risk assessment is the process of evaluating threats to a business, customers and stakeholders. Threats may range from a high probability to a minimal impact to a business. Such as faulty power grid to a high impact such as a cyber-attack to natural disasters. This step is vital in examining how effective a business continuity plan will succeed if subject to a threat scenario. This analysis will provide feedback or refinement to the

Auditors should assess risk and significance within the context of the audit objectives by gaining an understanding of the provisions of laws, regulations and contracts that are significant within the context of the audit objectives. During planning, auditors should identify the potential criteria needed to evaluate matters subject

Department, areas, and processes were determined by meeting with key management (column A & B). These meetings were documented and saved under the folder Process Meeting Memo 's located at L:Fraud and Security EnforcementInternal AuditRisk Assessment2017Process Meeting Memo 's.

The following study discusses the risk & resilient factors in the life of Pauline, a 16 year old NZ European/Maori teenager.

develop a methodology for quantifying risks, or should each situation be addressed individually? Can we have both a quantitative and qualitative risk evaluation system in place at the same time?

Audit risk is defined as the risk that the auditor gives an inappropriate audit opinion when the financial statements are materially misstated (Soltani, 2007). In Gray and Manson (2007)’s book Audit Risk can be split into three separate elements :

Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)