Essay Available:
Pages:
1 pages/≈275 words
Sources:
-1
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.68
Topic:
Risk-based Approach in Audit Planning, Importance of Materiality and Management Override
Essay Instructions:
Respond to the following in a minimum of 175 words:
Assess why auditors spend so much time planning an audit. Why would auditors use a risk-based approach when planning an audit? How does risk relate to internal controls?
Explain the importance of materiality during the planning phase of an audit. Describe steps that auditors take to address fraud risk during the planning phase of the audit.
Summarize management override, and why auditors are concerned with it.
Essay Sample Content Preview:
Audit Planning
Student Full Name
Institutional Affiliation
Course Full Name
Instructor Full Name
Due Date
Audit Planning
Auditing is a core organizational process that ensures that financial statements issued by an organization are free from material misstatements. It is the basis for offering the right information to stakeholders or investors in the company. Moreover, administrative agencies can know whether an organization adheres to the outlined laws through audit reports. While auditing has several stages with different difficulties, the initial stage (planning stages) can take time because of its essential to the auditing process. Planning involves a critical study of an organization's inherent systems within the internal control environment (Bunjaku, 2019). Thus, planning prepares auditors to anticipate risks, plan for the risks, and provide a foundation on which the financial statements will be judged.
By looking at the risks, auditors adopt a risk-based approach that allows timely responses in solving problems. Internal control aims to prevent the organization from making losses through fraud o...
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