Audit Risk Model : Auditing

Content:
00:00 Introduction
00:43 Limitations in the Audit Process
00:58 Complexity of Financial Transactions
01:22 Potential for fraud and delusion
02:01 How Audit solves these problems
02:20 How Auditors Approach Risk Assessment
02:59 Materiality and Risk (Relation)
03:46 Case: Higher Materiality Threshold
04:08 Summary- Materiality and Risk Assessment (Reference to professional Content)
05:28 The Audit Risk Model
06:19 Inherent Risk
06:45 Factors (Transaction Complexity, Nature of Assets and Liabilities, Industry Regulatory Environment, Economic Factor)
07:01 Control Risk
07:34 Detection Risk
08:03 Risk-Based Audit Approach: (Risk Assessment types: Inherent, Control, Detection, Audit)
08:52 Application and Audit Procedure of Audit Risk Model
09:51 Example: Applying Audit Risk Model to Revenue
10:00 Example: Evaluating Inherent Risk and Measures Taken by Auditors
10:51 Example: Evaluating Control Risk and Measures Taken by Auditors
11:40 Example: Evaluating Detection Risk and Measures Taken by Auditors
12:56 Inference generated by the auditors
13:36 How does reliability on Internal Control, Modification of substantial procedure work
14:09 Inference based on the evaluation
14:30 Substandard Procedure: (Sample record assessment and testing)
15:31 Risk of Material Misstatement
15:52 Summary (based on Risk assessment and internal control)


About Speaker:
Professor Helen Brown-Liburd is a tenured Associate Professor and the Associate Director of the Continuous Auditing & Reporting Lab (CAR Lab) at Rutgers Business School (RBS) in Newark, NJ.



#audit #risk #accounting