Limiting auditor responsibility to the evaluated risks

Author:ec. Carmen MATARAGIU, ec. Anca Cristina PENTEK



Keywords:audit techniques, tests, relevance, investigation, review, observation

The reasonable assurance obtained by the auditor as a consequence for the certainty level obtained by applying the audit procedures implies the auditor responsibility. \r\n\r\nRisks limitation concerning a possible responsibility of the auditor for not detecting the material misstatements in the financial statements is correlated with the procedures applied by the auditor in evaluating the risks for material misstatements. \r\n\r\nThe risk evaluation made by the auditor is subject to his/her subjectivity and this could lead to an insufficient exact evaluation in order to identify all the risks of material misstatements.\r\n\r\nThe existence of inherent risks in internal controls increases the possibility of not identifying all the risks before establishing the audit planning. \r\n\r\nThe topics of this article discuss mainly two requirements presented in the previous number of the Financial Audit magazine, namely: \r\n- general answers;\r\n- operational effectiveness of the internal control;\r\n\r\nA subsequent article will discuss the basic procedures applied by the auditor as a response to the evaluated risks. \r\n