The document discusses the concepts of materiality and risk in auditing. It covers how materiality is used to determine the appropriate audit report and evaluate misstatements. The audit risk model components of inherent risk, control risk, and detection risk are explained along with how they impact evidence planning. Factors that influence the assessment of risks are also outlined.
Liquidity Risk is normally a crucial issue in a banking crisis, however, during the 2007-2010 period, Liquidity has not been as difficult for us as we may have thought. There are many reasons for this, but number one is the fact that today’s community bankers simply have a better understanding of the various techniques for raising both retail deposits and wholesale funds. What does make this crisis a bit different is the relative pricing efficiencies in the wholesale or non-core funding arena these days and our session will focus on how bankers can avoid those difficult examiner discussions about the use of FHLB Advances and Brokered Deposits. It’s all about process and we will provide guidance on what needs to be in your ALCO Policy as it relates to wholesale funding. We will also explore the April 2010 Liquidity and Funds Management Guidance to ensure your bank is up to speed on those requirements. Finally, we will provide specific guidance on both Ratio Analysis and creating your Contingency Funding Plan and will review a sample CFP.
Liquidity Risk is normally a crucial issue in a banking crisis, however, during the 2007-2010 period, Liquidity has not been as difficult for us as we may have thought. There are many reasons for this, but number one is the fact that today’s community bankers simply have a better understanding of the various techniques for raising both retail deposits and wholesale funds. What does make this crisis a bit different is the relative pricing efficiencies in the wholesale or non-core funding arena these days and our session will focus on how bankers can avoid those difficult examiner discussions about the use of FHLB Advances and Brokered Deposits. It’s all about process and we will provide guidance on what needs to be in your ALCO Policy as it relates to wholesale funding. We will also explore the April 2010 Liquidity and Funds Management Guidance to ensure your bank is up to speed on those requirements. Finally, we will provide specific guidance on both Ratio Analysis and creating your Contingency Funding Plan and will review a sample CFP.
On December 5, 2013, Ron Steinkamp, principal, government advisory services at Brown Smith Wallace, presented at the 2013 MIS Training Institute Governance, Risk & Compliance Conference. Ron focused on the following keys to fraud prevention, detection and reporting:
1. Anti-fraud culture
2. Fraud policy
3. Fraud awareness/training
4. Hotline
5. Assess fraud risks
6. Review/investigation
7. Improved controls
Auditing for fraud can be very challenging. It has the aura of detective work – finding things people want to keep hidden. However, auditing and fraud examination are not easy. They should only be pursued by persons who have proper training and experience. Thus, fraud awareness for independent auditors and internal auditors is the focus of this PRESENTATION
On December 5, 2013, Ron Steinkamp, principal, government advisory services at Brown Smith Wallace, presented at the 2013 MIS Training Institute Governance, Risk & Compliance Conference. Ron focused on the following keys to fraud prevention, detection and reporting:
1. Anti-fraud culture
2. Fraud policy
3. Fraud awareness/training
4. Hotline
5. Assess fraud risks
6. Review/investigation
7. Improved controls
Auditing for fraud can be very challenging. It has the aura of detective work – finding things people want to keep hidden. However, auditing and fraud examination are not easy. They should only be pursued by persons who have proper training and experience. Thus, fraud awareness for independent auditors and internal auditors is the focus of this PRESENTATION
Hanrick Curran Audit Training - Materiality - April 2013Matthew Green
Training for assessing materiality as part of audit planning. Designed for intermediate to senior level staff and based on Australian Auditing Standard ASA 320. Also refers to AASB 1031 Materiality, which is an Australian Accounting Standard
ICFR - Risk on material mis statements control objectives and control activitiesLokesh Chopra
Document is pertaining to ICFR development (requirement as per Companies Act'2013 containing basic risks and mitigating controls. Can be referred if you go for Internal Audits too.
Operational risk management and measurementRahmat Mulyana
a short description in mixed English and Bahasa Indonesia on Operational Risk Management and Measurement, in particular value at risk calculation using Monte carlo Simulation. Another method using EVT (Extree Value Theory) will be delivered shortly. regards
The IT Auditing Series is a series of 10 2-hour webinars.
The study program consists of 5 modules Basic and 5 modules Advanced spanning a broad range of topics and issues in the IT Auditing field. The emphasis in all webinars is therefore on practical aspects, of Internal Auditing.
The course content is based upon ISACA Framework which has been accepted world-wide as the basis of skills and competencies required for all IT Auditors.
This session covers risk analysis for auditors
Risk-based auditing is a style of auditing which focuses upon the analysis and management of risk. ... A traditional audit would focus upon the transactions which would make up financial statements such as the balance sheet. A risk-based approach will seek to identify risks with the greatest potential impact.
Decision Of Acceptance Or Rejection Of Assignment Auditing: A Test Of The Effects Of Client's Business Risk, Risk Audit, Risk Business Auditor And Adaptation To Risk
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
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3. Materiality It is a major consideration in determining the appropriate audit report to issue.
4. Materiality The auditor’s responsibility is to determine whether financial statements are materially misstated. If there is a material misstatement, the auditor will bring it to the client’s attention so that a correction can be made.
5. Steps in Applying Materiality Planning extent of tests Step 1 Set preliminary judgment about materiality Step 2 Allocate preliminary judgment about materiality to segments
6. Steps in Applying Materiality Evaluating results Step 3 Estimate total misstatement in segment Step 4 Estimate the combined misstatement Compare combined estimate with judgment about materiality Step 5
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8. Set Preliminary Judgment About Materiality This preliminary judgment is the maximum amount by which the auditor believes the statements could be misstated and still not affect the decisions of reasonable users. Auditors decide early in the audit the combined amount of misstatements of the financial statements that would be considered material.
9. Factors Affecting Judgment Materiality is a relative rather than an absolute concept. Bases are needed for evaluating materiality. Qualitative factors also affect materiality.
10. Guidelines Accounting and auditing standards do not provide specific materiality guidelines to practitioners. Professional judgment is to be used at all times in setting and applying materiality guidelines.
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14. Estimated Total Misstatement and Preliminary Judgment Cash Accounts receivable Inventory Total estimated misstatement amount Preliminary judgment about materiality $ 4,000 20,000 36,000 $50,000 $ 2,000 12,000 31,500 $45,500 $ N/A 6,000 15,750 $16,800 $ 2,000 18,000 47,250 $62,300 Tolerable Misstatement Known Misstatement and Direct Projection Sampling Error Total Account Estimated Misstatement Amount N/A = Not applicable Cash audited 100 percent
15. Estimated Total Misstatement and Preliminary Judgment Net misstatements in the sample ($3,500) × Total recorded population value ($450,000) ÷ Total sampled ($50,000) = Direct projection estimate of misstatement ($31,500)
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17. Risk Auditors accept some level of risk in performing the audit. An effective auditor recognizes that risks exist, are difficult to measure, and require careful thought to respond. Responding to risks properly is critical to achieving a high-quality audit.
18. Risk and Evidence Auditors gain an understanding of the client’s business and industry and assess client business risk. Auditors use the audit risk model to further identify the potential for misstatements and where they are most likely to occur.
19. Illustration of Differing Evidence Among Cycles Sales and collection cycle Acquisition and payment cycle Payroll and personnel cycle Inherent risk A Medium High Low Control risk B Medium Low Low Acceptable audit risk C Low Low Low Planned detection risk D Medium Medium High
20. Illustration of Differing Evidence Among Cycles Inventory and warehousing cycle Capital acquisition and repayment cycle Inherent risk A High Low Control risk B High Medium Acceptable audit risk C Low Low Planned detection risk D Low Medium
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22. Audit Risk Model for Planning PDR = AAR ÷ (IR × CR) PDR = Planned detection risk AAR = Acceptable audit risk IR = Inherent risk CR = Control risk where:
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24. Impact of Engagement Risk on Acceptable Audit Risk Auditors decide engagement risk and use that risk to modify acceptable audit risk. Engagement risk closely relates to client business risk.
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31. Relationship of Factors Influencing Risks to Risks and Risks to Planned Evidence D = Direct relationship; I = Inverse relationship Factors influencing risks Acceptable audit risk Planned detection risk Planned audit evidence Inherent risk Control risk I D I I D I D
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33. Audit Risk for Segments Both control risk and inherent risk are typically set for each cycle, each account, and often even each audit objective, not for the overall audit.
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35. Measurement Limitations One major limitation in the application of the audit risk model is the difficulty of measuring the components of the model.
36. Relationships of Risk to Evidence Acceptable audit risk Inherent risk Control risk Planned detection risk Amount of evidence required Situation High Low Low Medium High Low Low High Medium Low Low Low High Medium Medium High Medium Low Medium Medium Low Medium High Medium Medium 1 2 3 4 5
37. Tests of Details of Balances Evidence Planning Worksheet Auditors develop various types of worksheets to aid in relating the considerations affecting audit evidence to the appropriate evidence to accumulate.
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39. Relationship of Tolerable Misstatement and Risks to Planned Evidence D = Direct relationship; I = Inverse relationship Acceptable audit risk Inherent risk Control risk Tolerable misstatement Planned detection risk Planned audit evidence I D I I I I D D
40. Audit Risk Model for Planning AcAR = IR × CR × AcDR AcAR = Achieved audit risk IR = Inherent risk CR = Control risk AcDR = Achieved detection risk where:
41. Audit Risk Models for Planning Evidence and Evaluating Results Acceptable audit risk Inherent risk Control risk Achieved detection risk Substantive audit evidence Achieved audit risk Compare D I D D D = Direct relationship I = Inverse relationship
42. Revising Risks and Evidence The auditor must revise the original assessment of the appropriate risk. The auditor should consider the effect of the revision on evidence requirements, without the use of the audit risk model.