What’s the Risk?!?! A Look at the New Auditing Standards and How they will Affect You……. Kim Higgins, Partner Gordon, Hughes & Banks, LLP 2008. New SAS’s by number. SAS No. 103, Audit Documentation (December, 2005)
What’s the Risk?!?! A Look at the New Auditing Standards and How they will Affect You……
Kim Higgins, Partner
Gordon, Hughes & Banks, LLP
a.Industry, regulatory, and other external factors
b. Nature of the entity
c. Objectives and strategies and the related business risks that may result in a material misstatement of the financial statements
d. Measurement and review of the entity's financial performance
e. Internal control, which includes the selection and application of accounting policies
a. Control environment
b. Risk assessment
c. Information and communication
d. Control activities
Control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.
a.Communication and enforcement of integrity and ethical values.
b.Commitment to competence.
c.Participation of those charged with governance.
d.Management's philosophy and operating style.
f.Assignment of authority and responsibility.
g.Human resource policies and practices.
Risk assessment is the entity’s identification and analysis of relevant risks to achievement of its objectives, forming a basis for determining how the risks should be managed.
Information and communication systems support the identification, capture, and exchange of information in a form and time frame that enable people to carry out their responsibilities.
Control activities are the policies and procedures that help ensure that management directives are carried out.