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IMPORTANT ELEMENTS OF THE AUDIT PROCESS
RESPONSES TO THE RISK OF MATERIAL MISTATEMENT
1. Financial Statement Level
• Staff (competent, experienced, experts if need be)
• Independent staff that wont be bullied
• Staff able to adopt the correct degree of professional
scepticism
• Consider accounting policies adopted by management,
are they right or point to fraud?
• Incorporate an element of unpredictability in
determining the nature, timing and extent of testing
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