April 2018
Beginner to intermediate
880 pages
28h 54m
English
| Source | Statement on Auditing Standards (SAS) 122. |
AU-C Section 330.03 states that:
…the objective of the auditor is to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement through designing and implementing appropriate responses to those risks.
Sections 330 and 315 are the centerpiece of the risk assessment standards. Together, these two sections provide detailed guidance on how to apply the audit risk model described in Section 320. That model describes audit risk as:
where AR is audit risk, RMM is the risk of material misstatement, and DR is detection risk. The RMM is a combination of inherent and control risk. Although the standard describes a combined risk assessment, the auditor ...