Nt1310 Unit 6 Audit Case

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Overall, auditors should reassess the level of audit risk with regard to executive compensation and benefits, take additional audit steps if necessary and communicate to the audit committee if fraud is found. However, auditors in this case failed to meet the requirements stated above.
According to the requirements of GAAS, "The auditor should perform risk assessment procedures that are sufficient to provide a reasonable basis for identifying and assessing the risks of material misstatement, whether due to error or fraud, and designing further audit procedures."1 "If the auditor obtains evidence that contradicts the evidence on which the original risk assessments were based, including evidence of misstatements that he or she did not expect,
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Nt1310 Unit 6 Audit Case

misstatement of financial statements and determine whether it is due to any error or fraud. It is a continuing process an auditor should do throughout the entire duration of the audit. Also by an auditor understanding its client’s environment and entity, it gives the auditor an opportunity to extent, design and perform any further audit procedures. The auditor should make risk assessments and any other relevant assertion levels based on its right and suitable understand of its environment. Some…

Words 1279 - Pages 6