Page 61 - AA Integrated Workbook STUDENT 2018-19
P. 61

Risk





                           Understanding the entity








                                                  What the auditor

                                                should understand







                             The environment                              The entity
                             Industry conditions                    Operations

                             Laws and regulations                   Ownership &

                                                                      governance
                             Competition

                                                                     Structure and finance
                             Economic conditions

                                                                     Accounting   policies

                                                                     Objectives and
                                                                      strategies

                                                                     System of internal

                                                                      control





























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