In a audit risk questions say eg reord is a new client.
Requirements is described audit risk and auditor response to each risk
My ans for audit risk : increase the detection risk due to the fact reord is new clinet
Auditor response : to ensure the audit team is made up of suitable experienced staff..
Is my ans for audit response will get a 1 marks? Or do I need further explain it?
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Audit risk
You may also write that more substantive procedures need to be performed to reduce detection risk
10y ago#2I think that only 1 mark for that requirement is unlikely. If it is a new client then detection risk can be reduced by:
Proper planning (remember ou know little about this client)
Laision with the outgoing auditor
More experienced staff (as you say)
Careful supervision and review of the audit process
Thorough documentation of the accounting system: weakness in controls increase audit risk.
Probably more substantive testing.
Thank you. .
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