Audit Risk Model (Audit, Inherent, Control & Detection Risks)

AUDIT RISK MODEL (AUDIT, INHERENT, CONTROL & DETECTION RISKS
In order to be able to provide reasonable assurance (that is less than absolute or 100%), the auditor must reduce the risk of giving an incorrect opinion (AUDIT RISK) to an acceptable level. To reduce such risk to an acceptable level, the auditor makes an assessment of the audit client's RISK OF MATERIAL MISSTATEMENT, which consists of the INHERENT AND CONTROL RISKS, and then designs the OVERALL AUDIT STRATEGY in order to set the DETECTION RISK at a level that will enable the auditor to maintain the OVERALL AUDIT RISK to the acceptable level.
INHERENT RISK pertains to the risk of material misstatement existing in the financial statements prior to consideration of internal controls, while CONTROL RISK pertains to the possibility that the audit client's INTERNAL CONTROLS will not be able to prevent, detect or correct errors and/or fraud which may be causing material misstatements in the financial statements.
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INVENTORY ESTIMATION
By: Accounting Iksimplified
Link: • Inventory Estimation u...
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The CPA Board Exam is probably one of the toughest licensure exams in the Philippines.
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Links to Other Episodes:
Episode 1: What is Auditing? in 10 Minutes
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Episode 2: 5 Differences Between External and Internal Audit
• Five (5) Differences B...
Episode 3: Generally Accepted Auditing Standards
• 10 GENERALLY ACCEPTED ...
#AuditingTheory #AuditRiskModel #TheCPARecipe

[@girliecruz8097]

sobrang detalyado at madaling maintindihan because of the given examples. more auditing discussion pa po huhu

[@carylhaideemarcos4196]

Sobrang dami ko pong natutunan. Hoping for more Audtheo Lectures. 😇 God bless po 😇

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@justablob4530]

Thanks sir dude pare chong, very very comprehensive and kwela!

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@dhurwayne4657]

You nailed it... Astig ang discussion..
Napakadali maintindihan... Sana ganito lahat mag discuss 👍👍👍

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@alrizhlumacang5495]

Very effective yung discussion nyo po sir. Very helpful po talaga. Thankyouuuu sir. More auditing topic discussion pa po. Godbless. Stay safe

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@kirstiechelmacias1115]

Very relevant po Sir😍 Topic namin sa quiz yan tomorrow. Thank you po.

[@TheCPARecipe]

Great. So what should I do next? 😎

[@kirstiechelmacias1115]

About risk response?? 🤭☺️😅
Thanks.

[@nbautista5140]

Thank you

[@TheCPARecipe]

You're welcome!

[@jesselaaron3234]

Thank you thank u thank u kuyaaaaa😁😁😁🙏🙏🙏.... Big help po talaga kayu dahil mas naintindihan ko na ang mga lessons ko sa module ko because of ur videos😍😍🙏🙏 thank u po

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@xinm4338]

Thanks po. And more AudTheo content pa po sana

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@jellycatalimbay3626]

Thank you po:)))))))) More auditing videos po sana sir

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@GTV-kv7he]

Good YT Videos 💜

[@blesselainebarrientos196]

Thank you po 💞

[@TheCPARecipe]

Welcome! Please dont forget to like, share and subscribe 😉

[@marianneleones2829]

GOOD DAY SIR! Been watching your videos esp in Auditing Theory since I get confused po sa mga terms na ginagamit and thank you so much for explaining it so well! God Bless, Sir. This is Marianne M. Leones, future CPA year 2022. 💓
Ps. More videos pa po sa Aud plsssss. I'm always checking if there's a new vid na. Thank you again, Sir Bro CPA Ron 💓

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@JellaJavier]

Please explain the detection risk separately.

[@marianneleones2829]

ALWAYS WAITING FOR NEW UPLOADS 🙁

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@DiamondRank1]

Are you working in private firm Sir?

[@TheCPARecipe]

Yes.

[@ivonjavate848]

Kailan kapa po mag uupdate?

[@TheCPARecipe]

Hi! you can check out the latest video. Now available 😊

[@SirATheCPAProf]

Tara balik external? 😂😆

[@TheCPARecipe]

Hi Client, Please send the requested files not later than EOB today.
😎
Regards.

[@thandimsomi9731]

Please speak only English 🙏

[@TheCPARecipe]

Don't worry my friend. I'll be adding subtitles when I have the time. ❤️

[@SaharawiUnionist]

you have Indian accent why using a blond blue-eyed skin?