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IMPORTANT ELEMENTS OF THE AUDIT PROCESS
RESPONSES TO THE RISK OF MATERIAL MISTATEMENT
2. Assertion Level
• Auditor should consider the nature, timing and extent of
testing necessary to reduce the ROMM due to fraud.
• Auditor cannot perform tests as usual. Auditor must
decide what to do (nature), when to do (timing) and
how much to do (extent).
• The nature of tests is likely to become more illusive.
• Examples will be use of CAATs, duplicate bank accounts/
employee IDs, searching anomalies etc.
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