the risk-based approach to audit and forensic investigations

Running head : THE RISK-BASED APPROACH TO AUDIT AND FORENSIC

INVESTIGATIONS

The Risk-Based Approach to Audit and Forensic Investigations

in APA Style

Abstract

Financial Statements are crucial material or an important source for various parties relying upon it for analysis and decision-making Therefore , the information included in the financial statements should be accurate and should present a true and fair view of the information contained therein . Thus the role of the auditor becomes all the more significant , as he has to audit the financial statements verifying the data and material

in it to ensure that the financial statements are not materially misstated . The auditor conducts his audit using various procedures and techniques . It isn 't necessary that the client 's financial statements are risk free and therefore the auditor adopts a risk-based approach to auditing . This approach , as discussed hereunder is expected to be used significantly in the years to come

The Risk-Based Approach to Audit and Forensic Investigations

Part :A

Explanation

There are various approaches to audit of financial statements of an entity . One of them is the risk-based approach . Due to inherent limitations of audit , there is no guarantee to the auditor that there is no fraud or error . The primary responsibility , however , of the prevention and detection of fraud and errors is of management and those charged with governance and not of the auditor . The frauds could be of various types including fraudulent financial reporting , misappropriation of assets etc . In this approach , the auditor identifies and evaluates the...