Auditors
can adopt what has known as the ‘top-down’ approach.
can adopt what has known as the ‘top-down’ approach.
In
this, the general risks are assessed first and then specific risks are
evaluated. The auditor must gain a understanding of the business strategies,
both current and future as well as the associated with business operations and
the control in place to
this, the general risks are assessed first and then specific risks are
evaluated. The auditor must gain a understanding of the business strategies,
both current and future as well as the associated with business operations and
the control in place to
The
audit can then assess the expectation develop from the assessment of the
business with what is shown by the account, the approach is known as a
‘top-down’ approach because it begins with management discussion and evaluation of controls at the highest level in the
business and then cascades down as specific issue are addresses. It attempt to
look at the accounts holistically, as a part of the ongoing business and its
processes, tackling say, materiality on the basic of the financial statement as
a whole and looking at the control environment from the point of view of the
highest level of control, i.e. senior management level, downwards through the
organization.
audit can then assess the expectation develop from the assessment of the
business with what is shown by the account, the approach is known as a
‘top-down’ approach because it begins with management discussion and evaluation of controls at the highest level in the
business and then cascades down as specific issue are addresses. It attempt to
look at the accounts holistically, as a part of the ongoing business and its
processes, tackling say, materiality on the basic of the financial statement as
a whole and looking at the control environment from the point of view of the
highest level of control, i.e. senior management level, downwards through the
organization.
