1. Discuss the effect of the company’s internal control system on the auditor’s risk assessment. 2. Discuss the term ‘significant risks’ and how auditors should deal with them. 3. Define the terms...

1. Discuss the effect of the company’s internal control system on the auditor’s risk assessment.

2. Discuss the term ‘significant risks’ and how auditors should deal with them.

3. Define the terms ‘material misstatements’ and ‘uncorrected misstatements’. What are the auditor’s actions when such misstatements exist?

4. Define the terms ‘risk assessment procedures’ and ‘analytical procedures’.

5. Explain the main sources of business risk and their influence on a company’s risk assessment process.