Depending on the results of their tests of control, the auditors may restrict substitutive procedures.
• Discuss and contrast the following concepts:
o the planned assessment of control risk
o the revised assessment of the risk after tests of controls have been performed
- Identify and analyze the types of risks that organizations face and to apply the applicable risk knowledge to understand and perform better audits.
- Develop an auditor report attesting to management's assertions regarding the effectiveness of internal controls and recognize situations that present potential ethical and legal issues and develop solutions for those issues.
- Assess and explain the risks associated with all sampling procedures and how to use probability proportional to size sampling to test account balances.