Auditing

Intern risk and control risk cannot be controlled by the management i.e are uncontrollable

Detection risk is related directly to the effectiveness of the auditor prosecutor

Detection risk related inversely to control risk

Internet risk and control risk are highly interrelated

affects the audit risk

affects the level of detection risk that auditor may accept

helps him to fix materiality level for each financial assertion

is directly related to inherent risk

audit of each and every item

intensive audit of each and every item

intensive audit of a few items

audit of a few selected items

To provide a basis for review of audit work

To provide a basis for subsequent audits

To ensure audit work is being carried out

To provide a guide for advising another client

Increased use of computers for recording accounting transactions

Increased reliance on internal auditors to monitor accounting systems

Segregation of incompatible duties across several people

Having internal auditors report only to the Board of Directors

Error of principle

Error of commission

Error of omission

Error of duplication