- This topic has 7 replies, 3 voices, and was last updated 9 years ago by
.
- Posts
Sir,
I have learnt that audit risks means we have to find out risks of material misstatements plus detection risks.
I want to know is thats how it is or something else to be added in it?
If thats fine then what we have to write if question asks for audit risks in part a and risks of material misstatement in part b?
Or there wouldnt be such a question?Thanks.
Hi Snowia
Have you checked questions on audit risk from past exams? I believe that you’ll get a pretty good indication from there! You would usefully read the answers to those questions whilst you’re there 🙂
Although i practiced many questions i was just confused because of exam comig near :-/
Well i understood it now when i went through one past exam question.
I wanted to know one more thing.
Question asks for ethical, proffesional, and commercial issues. I am good at finding ethical issues but then i donot understand what to write further can u plzz explain with one example an ethical, professional and commercial issue. I will b thankful. 🙂
And yes in this past papers didnt helped me, so i need ur help.
Ethical – you say you’re ok with
Professional – quality control of audit, training of audit staff, communication with prior auditors
Commercial – not sure on this one. Is it from a past exam? I don’t remember reading a question asking for commercial issues
I can’t remember the exact question but there was one.
The question had a joint venture business opportunity with the audit client for manufacturing materials and I think the commercial issue was that is it commercially viable for them in the sense of core competency and the implications of diversification.But surely that’s a risk that the company faces – that’s not a risk that is facing the auditor!
Thank u so much Mike its clear now. 🙂
And yes u r right most of the questions ask for ethical and professional issues but there is a question named Raven & Co it asked for all three issues thats I wanted to confirm.
- You must be logged in to reply to this topic.