Audit approach generator

This is a guide for determining the audit approach for any selected account balance assertion, such as the audit approach in relation to, for example, the validity of trade receivables.

1. Enter the name of the account balance for which the audit approach is to be determined e.g. retail sales, payroll expenditure, raw materials, trade accounts payable, etc.. For example:
2. Indicate the nature of this account:
3. Select the account balance assertion for which the audit approach is to be determined.
4. Select the appropriate acceptable level of audit risk in relation to the particular account balance assertion, based on the acceptable level of risk at the financial statement level adjusted for any increased or reduced risk applicable to the account balance assertion.
Mod. Low Very low
5. Select the appropriate level of inherent risk in relation to the particular account balance assertion, based on the inherent risk at the financial statement level adjusted for any increased or reduced risk applicable to the account balance assertion.
Low Mod. High
6. Select the appropriate level of control risk in relation to the particular account balance assertion, based on the control risk at the financial statement level adjusted for any increased or reduced risk applicable to the account balance assertion. Where control risk has not been (or will not be) evaluated, select "High".
Low Mod. High

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