Specific risks assesment in auditing the financial investments services companies

Author:University professor, PhD. Tatiana DĂNESCU, PhD Student Ovidiu SPĂTĂCEAN

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Keywords:audit standard, credit risk, foreign exchange risk, concentration risk, judgment, exposure

Abstract:
By their activity specifics, the financial investments services companies, acting as intermediaries on the regulated capital markets pose a high level of exposure to a diversified range of financial and operational risks, of which cumulated effects can influence in a significant manner the audit approach, mainly in the risk assessment stage. \r\n\r\nIn context the paper intends to make a synthesis and to present these risks in order to make easier the practical implementation of the requirements of:\r\n-International Audit Standards 315 Understanding The Entity And Its Environment And Assessing The Risks Of Material Misstatement, according to which „THE AUDITOR`S PROCEDURES IN RESPONSE TO ASSESSED RISKS the auditor should obtain an understanding of the entity and its environment, including its internal control, sufficient to identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, and sufficient to design and perform further audit procedures”;\r\n-International Audit Standards 330 The Auditor`s Procedures In Response To Assessed Risks which require the auditor „to design and perform further audit procedures whose nature, timing, and extent are responsive to the assessed risks of material misstatement at the assertion level”. \r\n

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