Chapter 9 - Chapter9:MaterialityandRisk Where have we seen...

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Chapter 9: Materiality and Risk Where have we seen these terms before? GAAS Audit report The role of judgment Materiality Risk
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Materiality Planning phase Set preliminary judgment (revisions possible) Allocate to segments Evaluation phase Estimate misstatement in segment Combine segments into combined misstatement Compare combined misstatement to preliminary judgment
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Preliminary Judgment Judgment!!! Base Qualitative factors
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Evaluating Misstatements Known vs. Likely Trivial? Known and not trivial-- Likely--
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Risk Relationship between risk and evidence Types of risk Setting acceptable audit risk Assessing risk Inherent risk Fraud risk Control risk Implications of risk assessments Evaluating results
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Types of Risk Audit risk Inherent risk Control Risk Detection Risk Audit risk model Audit risk model as a planning tool
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Setting Acceptable Audit Risk Users and uses
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This note was uploaded on 02/09/2011 for the course ACCT 407 taught by Professor Smith during the Spring '11 term at University of Louisiana at Lafayette.

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Chapter 9 - Chapter9:MaterialityandRisk Where have we seen...

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