Assessing and Responding to Risks in a Financial Statement Audit

摘要

1. The new audit risk standards require the auditor to understand and respond to risks of material mis-statement, whether due to errors or fraud. In reaching that understanding, auditors should identify risks to the entity's business and the controls in place to mitigate them. 2. These standards use the more sharply defined terms must, should and may from SAS no. 102, Defining Professional Requirements in Statements on Auditing Standards. 3. Because these standards address many issues at the core of auditing, they may significantly affect the formality of the risk assessment process and documentation of the assessment details, depending on how this has been done in the past. 4. Entities and auditors will maximize their effectiveness and efficiency if they carefully plan their responses to the new requirements. The documentation and assessment of controls over fi- nancial reporting is a good place for them to begin such efforts. 5. The AICPA is creating a number of educational products designed to help auditors implement the new standards.