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What are the inherent audit risks for Qantas airline?
expenses
What are the three components of Audit risk?
Inherent Risk, Control Risk and Detection Risk
Which are the five audit implications of business risk?
Client viabilty Inherent risk: Tone at the top Audit risk of specific assertions Analyticals Information systems
What is the inherent limitation?
Unlike other components of an internal control system, humans are subject to judgment errors which can create weaknesses in an otherwise strong internal control system. As a result, faulty human judgment is an inherent limitation of any system of internal control.
What is disclaimer audit opinion?
A disclaimer of opinion should be expressed when the possible effect of a limitation of scope is so material and pervasive that the auditor has not been able to obtain sufficient appropriate audit evidence and is unable to express an opinion on the financial stements.
What is the statute of limitation for payroll tax return audit?
Generally, three years for the IRS. Six years in cases where there is a gross understatement. Unlimited on returns that are not filed.
What is inherent limitations?
Unlike other components of an internal control system, humans are subject to judgment errors which can create weaknesses in an otherwise strong internal control system. As a result, faulty human judgment is an inherent limitation of any system of internal control.
What are inherent limitation of taxation?
People will try to reduce their income in order to pay less in taxes. Since the system is based on a percentage, reducing your income means you pay less.
Why an auditor doesnot gives absolute assurance?
An Auditor cannot give absolute assurance because of the Inherent Limitations of Audit. i.e 1. Work of an auditor is permiated by judgment 2. Most of Audit evidences are persuasive rather than conclusive 3. Audit is of Test Nature 4. Inherent Limitations of Internal Control. Perhaps this is what item 1 means but let me say it anyway- the auditor can be paid off to hide the truth , ignore red flags and make the books look good. Sometimes the pay-off is subtle- the auditor is made aware that the client is important to the firm and that a unfavorable audit would cause the firm to lose the account.
What does reasonable assurance mean in audit function?
The key concept is "reasonable" assurance. The auditor does not provide absolute assurance, because this is not attainable due to factors like the need for judgment, the use of testing, the inherent limitations of internal control and the fact that audit evidence is generally persuasive rather than conclusive.
At what point do client-imposed audit scope limitations affect the type of audit opinion issued?
It depends. In some cases, scope limitations can be "worked around" and a different audit procedure can accomplish the same objective. When that happens, there is no affect on the type of audit opinion. In other cases, the scope limitation will relate to an area that is not material to the financial statements. Again, no affect on the opinion. However - some scope limitations can prevent the auditor from gaining audit evidence to support an unqualified (clean) opinion. If that happens in a significant area, the audit opinion may have to be a "disclaimer." This is determined by the auditor in the specific situation.
Differences between IS Audit nad Traditional Audit?
what is the differences between IS Audit and traditional Audit?
