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Risk based auditing

Assignment Brief:

The assessment of risk plays a large role in the world of Auditing. Audit risk, represents the risk to an auditor or an audit firm, of paying damages that may arise out of negligent work when forming an opinion of the truth and fairness of a set of company financial statements.

Required:

Outline and assess the factors to be taken into consideration by the auditor when adopting a risk based audit approach.

Secondary Research Level HE5 – It is expected that the Reference List will contain between ten and fifteen sources. As a MINIMUM the Reference List should include two refereed academic journal articles, two professional journal articles and six academic books.

First class:

Students will provide an in-depth outline and assessment of auditors and risk based auditing. Focused and justified arguments will be provided as to why a risk based audit approach adds value to the audit. Extensive research demonstrating use of a wide range of current secondary research sources will be evident. Academic style and referencing will be excellent.

Second class:

Students will provide an effective outline and assessment of auditors and risk based auditing. Focused and justified arguments will be provided as to why a risk based audit approach adds value to the audit. Research demonstrating use of a wide range of current secondary research sources will be evident. Academic style and referencing will be good.

Third class:

Students will provide a satisfactory outline and assessment of auditors and risk based auditing. Focused and justified arguments will be provided as to why a risk based audit approach adds value to the audit. Research demonstrating use of a range of current secondary research sources will be evident. Academic style and referencing will be fair, with the report being produced to a satisfactory standard.

ASSIGNMENT MARKING GUIDE

Marks are awarded for structure and referencing of the essay as well as for the extent of the literature review, depth of analysis/evaluation and formation of a conclusion.

Answer is expected to include:

%

Outline of audit risk.

15

Justification and examples of auditors approach to risk and risk based auditing.

60

Formation of a logical conclusion following a well reasoned evaluation.

15

Structure/referencing/bibliography.

10

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