Audit Planning

The integrity of management and the quality of the company’s financial condition affects whether or not an auditor wants to be associated with a client. This is engagement risk. All of the factors, plus the quality of internal controls and the complexity of the organization’s financial processes affect financial reporting risk. The auditor must assess this risk as a basis for identifying areas most likely to be misstated as well as a basis for determining the overall audit approach and extent of procedures to be performed. Do you agree? Please explain.

……………….Answer preview……………

I do agree. The auditors need to first of all know the company they want to serve before they can take up business with them. As an auditor, the credibility of the company matters a lot. If the company has ever engaged in financial fraud, it is very likely that you would be associated with it which therefore will give you a hard job getting other jobs…………………..

APA

311 words