| FACTOR | DISCUSSION | LOW | MODERATE | HIGH |
| According to ASA200.Aus13.4 inherent risk (IR) is a measure of the susceptibility of material misstatement before considering any internal controls. | ||||
| Nature of client’s business | ||||
| Results of previous audits | ||||
| Initial versus repeat audits | ||||
| Quantity of non routine transactions | ||||
| Quantity of estimates and judgement required for accounts | ||||
| Potential for fraudulent financial reporting & misappropriation of assets (fraud risk factors, see ASA 240) | ||||
| List any other factors (can you see any illustrations in your client’s annual report of the examples in ASA 315, Appendix 2 and ASA 570.A2?) | ||||
| Conclusion: Overall inherent risk level | Discuss how you arrived at your overall assessment here: |
Ref: http://www.stockland.com.au/assets/investor centre/financial report 2012.pdf
Attachments:
2b.docx