Founded in 2008, Right Advisory, LLC, is a financial consulting firm that provides an array of services to businesses, governance committees, and finance professionals. In addition to its consulting services, Right Advisory, LLC, offers clients in-depth courses on a variety of topics, including audit risk.

2.  Founded in 2008, Right Advisory, LLC, is a
financial consulting firm that provides an
array of services to businesses,
governance committees, and finance
professionals. In addition to its consulting
services, Right Advisory, LLC, offers clients
in-depth courses on a variety of topics,
including audit risk.

3.  Audit risk refers to the risk that an auditor will
miss errors or intentional miscalculations in
financial statements from an individual or a
company and will produce a flawed audit
report because of it. The risk components
that make up audit risk include the risk that
a misstatement will appear in financial
documents and the risk that the
misstatement will not be detected by
internal controls or an auditor’s review.

4.  In order to reduce audit risk, an auditor
must focus on either reducing misstatement
risk or detection risk. If misstatement risk is
high, an auditor may suggest that a
company make changes to its control
system to help catch the misstatement
internally. Detection risk, on the other hand,
is the direct responsibility of the auditor, and
he or she can reduce this risk by examining
financial documents more closely and/or
performing audits more frequently.