Summarize six advantages of the business risk approach in auditing.

      

Summarize six advantages of the business risk approach in auditing.

  

Answers


Kavungya
• Investigation of business risk enables the auditor to have a profound knowledge of the
business.
• The approach focuses the audit on to the high risk areas which are material to the
business.
• The approach adds value to the audit and enables'the auditor to offer some commercial
benefit to the audit.
• The previous emphasis on transactions and systems was expensive and uneconomic.
• The business environment and corporate governance issues and the nature of
management control, are all now more significant for and translate more quickly into the
financial statements.
• The approach tends to involve partners and senior managers much more in the planning
styles of an audit.
• The business risk review may show up area where the auditor can suggest that its highly
paid service can be offered the client.
• The pace of change in business in computing and communications means that companies
are much more at risk of failure than ever before.

Kavungya answered the question on May 14, 2019 at 12:47


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