Page 6 - PowerPoint Presentation
P. 6
IMPORTANT ELEMENTS OF THE AUDIT PROCESS
Understanding The Entity And Its Environment
• If the auditor does not have a thorough
understanding of his client’s business and the
business in which it operates, a proper
identification and assessment of the ROMM is
not possible.
• Refer to ISA 315 for discussion of factors to be
considered when obtaining an understanding of
the client and its environment.
6
