From the course: Building a Data-Driven Audit

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Planning and risk assessments

Planning and risk assessments

From the course: Building a Data-Driven Audit

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Planning and risk assessments

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- In order to have a successful audit, you must plan accordingly. A common practice during this phase is to conduct an assessment to identify areas of risk. However, some auditors avoid this step. They either don't understand it or would rather do the same thing they did last year, something the audit world calls SALLY, same as last year. But you can't do that nowadays. Things change way too often to just do the same thing year after year. Let's talk about ways you can conduct a risk assessment during the planning phase with two different business units, finance and IT. For finance, most of the work done in this phase is manual process, including things like talking with management and understanding the entity. But there are some analytical procedures you can perform to identify any unusual transactions or events that might need to be further investigated during the audit it. To accomplish this, you're going to need to collect data including financial statements, general ledger…

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