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July 25, 2020 at 7:32 am
In the above video, when the tutor spoke about the examples of business risks and the responses, was he speaking and responding from auditors perspective and their responsibilities or what is management perspective ?? A lot of what is spoken like examining Board minutes and inspecting documents/correspondence is the duty of auditor right?
Kim Smith says
July 25, 2020 at 9:45 am
As it says on the bottom of page 57 “The auditor does not have a responsibility to identify or assess all business risks, but an understanding of business risks that may result in ROMM is essential (ISA 315).” – please do look at the examples on page 58 and this chapter generally. In AAA, whether talking about business risk or audit risk it is the auditor’s perspective that is relevant – from management’s perspective is examined in other strategic professional exams (SBL, AFM, APM).
July 25, 2020 at 10:07 am
Thank you so much
July 22, 2020 at 1:05 pm
Sir, regarding point 5, is this an example of NOCLAR? Should we enquire management if the are aware or seek legal advice first (similar to whistle blowing in fraud examples), should we then link the point to management integrity doubts etc?
July 22, 2020 at 3:33 pm
It does only say “appear to be made of ivory” – so we cannot leap to any conclusions. But yes – there is a risk of NOCLAR – after all money laundering is also subject to law and regulations. As Ken says there should be a discussion with management about the possibility of breaking of law – there are ways of referring to NOCLAR without using this term.
July 23, 2020 at 8:12 am
Thank you very much.
July 25, 2018 at 6:41 pm
Thank you, very helpful lectures
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