Audit Risk – ACCA Audit and Assurance (AA)
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Thank you for this lecture. It was really insightful and engaging
Thank you so much for this video sir. I love your teaching style, and I particularly love how you always recap at the end of the lecture.
there is another lecture of the other teacher in opentiution of this chapter why have you mixed lectures of different teachers ? or is it the syllabus change and the older one is no longer applicable ? are the older lectures applicable for september 2023 sitting ?
As listed on this page https://opentuition.com/acca/aa/acca-audit-assurance-aa-lectures there is only one lecture on audit risk – and this is it.
We update lectures as and when considered necessary to be technically up-to-date, relevant to the syllabus and in keeping with the current exam style and standard. There will therefore be a reason why an old lecture has been replaced.
Thank you so much for the lively and clear explanations, Sir.
I loved the way you are teaching thank you indeed Sir !!
I like the way this gentleman teaches, thank you very much!!
I agree; makes the subject a lot more engaging!
Thank you for providing these resources for free. These lectures are very useful! 馃檪
Thank you for making use of them! I do hope you will use the practice questions too https://opentuition.com/acca/aa/aa-practice-questions/ – they are a quick way of testing your knowledge and answer justifications are provided if you get any wrong.
Hello sir, may I know in which chapter video the discussion of materiality is in?
I’m still confused about materiality and how to apply it on auditing. Thank you so much.
See pages 32/33 of Chapter 5
I have a question regarding fees.
As you said more audit work will bring more fees enough to cover the work done. But, what if the fees if charged as per the work done would create a self interest threat and be more than 15% of the total fees of the firm?
What do we do then?
If you download the notes you will find that you can search on key words – so on page 21 you will find this spelt out – there would have to be appropriate safeguards to reduce the threat to an acceptable level. Examples of safeguards can be found on page 23 – it a threat cannot be sufficiently reduced the audit must be declined/discontinued.
Hi I just want to ask is business risk related to factors like economy, recession, technological change? I was wondering if these factors important to an auditor as they don’t really affect the financial statements
Business risk is important, but NOT ON THE F8 SYLLABUS! Note, however, you can be asked to identify discuss signs of going concern problems.
If you opt for P7, Advanced A & A you will have to deal with it a lot
Very clear and on point. Love the practical examples. You are always excellent on these lectures Gromit
Hello sir,
I just want to know that how the question will come for audit risk and how we need to answer that question?
For eg :- if a question comes that describe six audit risks related to the revenue of the company. Then how we will answer the question?
Audit risk is the risk that there is something wrong in the published FS. So for revenue, think all the ways that the figure could be wrong. This will usually depend on the information given in the scenario. Going through assertions can help:
Incomplete
Extra sales (existence)
Cut-off errors
Not splitting out VAT (accuracy)
are four generic risks.
Thanks for the prompt reply.
In such cases we have to identify the risks from the given scenario and auditor’s response to such risks will be the assertions used by the auditor.
Please correct me if I am wrong
The auditor has no choice about assertions: these are set out in the relevant ISA. All assertions need evidence that they are ‘correct’. The scenario determines which assertions might have the highest risk. For example, it might be concluded that receivables are accurately recorded, but there could still be considerable risk about their valuation (depending on customers etc). High risk implies that more audit work is needed in that area.
i cannot open the videos
Our usual advice is to try a different browser eg Chrome.
Also, I don’t know where you are. Some countries impede video access.