scholarly journals RISK-ASSESSMENT PROCEDURES AND ESTABLISHING THE SIZE OF SAMPLES FOR AUDITING FINANCIAL STATEMENTS

2014 ◽  
Author(s):  
Daniel Botez
Keyword(s):  
Risk Assessment ◽  
Financial Statements ◽  
Inherent Risk ◽  
Assessment Procedures ◽  
Audit Standards ◽  
International Audit

In auditing financial statements, the procedures for the assessment of the risks and the calculation of the materiality differ from an auditor to another, by audit cabinet policy or advice professional bodies. All, however, have the reference International Audit Standards ISA 315 “Identifying and assessing the risks of material misstatement through understanding the entity and its environment” and ISA 320 “Materiality in planning and performing an audit”. On the basis of specific practices auditors in Romania, the article shows some laborious and examples of these aspects. Such considerations are presented evaluation of the general inherent risk, a specific inherent risk, the risk of control and the calculation of the materiality.

scholarly journals External auditor responsibility in detecting errors and frauds under international audit standards

2020 ◽  
Vol 4 (2) ◽  
pp. 1-16
Author(s):  
Amina BOUFARH
Keyword(s):  
Financial Statements ◽  
Professional Responsibility ◽  
Illegal Behavior ◽  
External Auditor ◽  
Audit Standards ◽  
International Audit

This study aims to demonstrate the responsibilities of the external auditor with regard to illegal behavior in the financial statements by assessing the auditors' compliance with their professional responsibility and the ability to detect the risks of fraud and identify the factors leading to the disclosure by auditors. The study concluded that the external auditor is not legally responsible for detecting fraud, but should exercise caution when examining the financial statements for misstatements, as he should express an opinion. more transparent and credible on the validity of financial statements

scholarly journals THE AUDIT OF FINANCIAL STATEMENTS PREPARED BY THE BENEFICIARIES OF EU GRANT

2013 ◽  
Author(s):  
Danut Rada ◽  
Doina Rada
Keyword(s):  
Financial Statements ◽  
Public Institutions ◽  
Financial Resources ◽  
Related Services ◽  
International Standard ◽  
Economic Agents ◽  
Audit Standard ◽  
Audit Standards ◽  
International Audit

The patrimonial economic entities - public institutions or economic agents, beneficiaries of EU grants, are required to maintain separate accounts situations of the use of these financial resources and also to prepare financial statements in which to be reflected the fees occurred by implementing of projects. The audit of these financial statements is specific and is based on the provisions of international audit standards ISRS 4400 “international standard for related services” and ISAE 3000 “international standard for certification measures”. In some cases, considering the request of the audit beneficiary, can be applied the provisions of ISA 800, International Audit Standard “Special Considerations-Audit of financial statements prepared in accordance with special purpose frameworks”.

The model evaluating the propensity of the auditee's management to risk

2020 ◽  
Vol 23 (11) ◽  
pp. 1253-1268
Author(s):  
S.V. Arzhenovskii ◽  
T.G. Sinyavskaya ◽  
A.V. Bakhteev
Keyword(s):  
Risk Assessment ◽  
Financial Reporting ◽  
Low Income ◽  
Econometric Model ◽  
Financial Statements ◽  
Binary Choice ◽  
Methodological Framework ◽  
Risk Propensity ◽  
Large Production ◽  
Assessment Procedures

Subject. We identify what determines the risk propensity of those charged with financial reporting through surveying, so as the results could be subsequently applied in assessing the risk of material misstatement of financial reporting due to fraud. Objectives. We herein outline the methodological framework for conducting risk assessment procedures with respect to material misstatements due to fraud as part of financial reporting audits. Thus, we set an econometric model to empirically evaluate the probable risk propensity of a person charged with financial reporting. Methods. We applied the logistic regression model identified through empirical data of the survey we conducted among 515 employees of audited entities. Results. For purposes of research, we specified and identified the econometric model of a binary choice. The higher risk propensity was observed among people above 45, those having mediocre or low income, one profession, working for large production enterprises. Conclusions. What makes the technique advantageous is its low labor-intensity and higher efficiency of risk assessment procedures as part of audits. Based on the model, forecasts will help evaluate the propensity of the audited entity's management to the business risk. The findings can be used for analytical procedures in assessing the risk of material misstatements in financial statements due to fraud as part of audits, referring to its as the expected result. If the acceptability of a divergence between the expected and factual values is subsequently evaluated, this will help assess the risk of material misstatement in the audited entity's financial statements and determine whether additional auditing procedures are needed.

The role of professional judgment in international standards on auditing

Auditor ◽  
2015 ◽  
Vol 1 (3) ◽  
pp. 3-8
Author(s):  
Пожарицкая ◽  
I. Pozharitskaya
Keyword(s):  
Conceptual Model ◽  
Financial Statements ◽  
International Standards ◽  
Professional Judgment ◽  
Subject Areas ◽  
The Subject ◽  
Audit Standards ◽  
International Audit

Based on the study of international audit standards and international framework of tasks to provide certainty defines the role of the auditor’s judgment in the process of auditing the financial statements. A conceptual model of professional judgment based on ISA 200. The conclusions about the need to develop the subject areas of application of professional judgment of the auditor and its methodological tools.

Audit Documentation of Financial Statements in Accordance with the Requirements of International Standards

Auditor ◽  
2017 ◽  
Vol 3 (7) ◽  
pp. 28-36
Author(s):  
Кочинев ◽  
Yuriy Kochinev
Keyword(s):  
Financial Statements ◽  
International Standards ◽  
Audit Strategy ◽  
Audit Standards ◽  
International Audit

Th is article reveals the issues of working papers draft ing for such audit sections as the audit engagement, harmonization of conditions of the audit engagement, materiality information common audit strategy, an audit plan. The recommendations for documentation based on the International Audit Standards requirement are suggested.

scholarly journals Positive Research Regarding the Implementation of International Audit Standards at Romanian Entity Level

2019 ◽  
Vol 10 (07) ◽  
pp. 21586-21591
Author(s):  
Salomia Maria Mădălina
Keyword(s):  
Critical Analysis ◽  
Financial Statements ◽  
Methodological Framework ◽  
Positive Research ◽  
Time And Space ◽  
Auditing Standards ◽  
Financial Audit ◽  
Audit Activity ◽  
Audit Standards ◽  
International Audit

The research was based on critical analysis, in time and space, of the theoretical references underlying the organizational and methodological framework for the performance of financial audit, international auditing standards, as well as the integration of international and European requirements in the financial audit activity of our country, the scientific approaches in the field of auditing the financial statements, elaborated by the revision of the specialized regulations and in the second part, the stages of the organization of the financial audit activity, the methods and currently used techniques in the financial audit for obtaining the evidence elements, are provided. 

scholarly journals An Approach to Sustainability Risk Assessment in Industrial Assets

2021 ◽  
Vol 13 (12) ◽  
pp. 6538
Author(s):  
Fco. Javier García-Gómez ◽  
Víctor Fco. Rosales-Prieto ◽  
Alberto Sánchez-Lite ◽  
José Luis Fuentes-Bargues ◽  
Cristina González-Gaya
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Asset Management ◽  
Analysis And Evaluation ◽  
The People ◽  
Preliminary Study ◽  
Assessment Procedures ◽  
Identification Analysis ◽  
A Company ◽  
Industrial Company

Asset management, as a global process through which value is added to a company, is a managerial model that involves major changes in strategies, technologies, and resources; risk management; and a change in the attitude of the people involved. The growing commitment of companies to sustainability results in them applying this approach to all their activities. For this reason, it is relevant to develop sustainability risk assessment procedures in industrial assets. This paper presents a methodological framework for the inclusion of sustainability aspects in the risk management of industrial assets. This approach presents a procedure to provide general criteria, methodology, and essential mandatory requirements to be adopted for the identification, analysis, and evaluation of sustainability aspects, impacts, and risks related to assets owned and managed by an industrial company. The proposed procedure is based on ISO 55,000 and ISO 31,000 standards and was developed following three steps: a preliminary study, identification of sustainability aspects and sustainability risks/opportunities, and impact assessment and residual risks management. Our results could serve as a model that facilitates the improvement of sustainability analysis risks in industrial assets and could be used as a basis for future developments in the application of the standards to optimize management of these assets.

scholarly journals The Suitability of BEPS in Developing Countries (Emphasis on Latin America and the Caribbean)

2021 ◽  
pp. 47-59
Author(s):  
Isaác Gonzalo Arias Esteban ◽  
Anarella Calderoni
Keyword(s):  
Risk Assessment ◽  
Developing Countries ◽  
Latin America ◽  
Training And Development ◽  
Technological Infrastructure ◽  
General Overview ◽  
The Caribbean ◽  
Assessment Procedures ◽  
Competing Priorities ◽  
Mass Information

AbstractIn developing countries, where competing priorities often overwhelm capacity, the sweeping BEPS initiative can serve to motivate and justify the devotion of limited resources to the international tax field. It is hard to say whether all of the BEPS Actions are “suitable” for developing countries as their size, level of maturity, and many other factors that influence taxation vary drastically. An evaluation of domestic circumstances will help to determine the tax regime’s compatibility with the BEPS recommendations. This initiative represents a minimum level of commitment that is necessary to ascertain sustainable BEPS implementation. Certain attributes will influence the feasibility of this implementation such as the adaptability of the juridical system to enforce new regulations, the technological infrastructure, the capacity to process and protect mass information, efficient risk assessment procedures and analysis tools, and continual training and development workshops, among others. The BEPS project is still quite young; however, thanks to contributions from CIAT member countries, the BEPS Monitoring database was created. This can provide us with a general overview of how extensively each BEPS Action has been implemented in these countries so far.

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