ACCOUNTING, AUDITING & ATTEST
a nonsignificant audit area can cause the audit to be inefficient. 5. PROVIDE PROPER DOCUMENTATION The risk assessed should link to the nature, timing and extent of audit procedures performed. The risk assessment documentation should reference — or comments should be made — linking the assessments to the audit work performed. Audit procedures might need to be tailored to do the risk assessments, or the risk assessments might need to be revised due to changes needed in the audit procedures being performed. The risk assessments are developed at planning but can change throughout the audit process. These changes should be documented, and the risk assessments should be updated during the audit. Explaining the reasons why a certain audit approach and certain audit procedures were taken on an audit is not enough without any documentation for those
decisions. Documentation of the risk assessments that lead to those audit approaches and audit procedures are necessary for an audit to be in compliance with the risk assessment standards.
DO MORE JOIN THE ACCOUNTING & AUDITING STANDARDS INTEREST GROUP
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Michael Caro, Jr., CPA, CFE, PSA, is a partner at Bederson LLP. He is a member of the NJCPA and can be reached at mcaro@bederson.com.
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AUDITING ARTICLES AND RESOURCES
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Sept. 7, Sept. 24, Oct. 12, Oct. 27, Nov. 1 or Nov. 16
COMMON AUDIT DEFICIENCIES
Sept. 20, Live Webcast
FOCUS ON ENGAGEMENT QUALITY: HOW TO AVOID DEFICIENCIES IN PEER REVIEWS
Nov. 9, Live Webcast
ACCOUNTING AND AUDITING CONFERENCE
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NEW JERSEY CPA | FALL 2021
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