Key Financial risks and inherent risks in derivatives auditing – practical examples

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



Keywords:financial risks, derivatives, factors, economic purpose, fair value, localization

By making a connection between the International Auditing Practical Statements on 1012 „Derivatives Auditing” and the audit engagements specific for the transactions with derivatives it is necessary for the auditor to identify and to assess the key financial risks, and the inherent risks which are significant at the level of the assertions for classes of transactions with derivatives, accounts balances or information presented in the financial statements. \r\n