How To
Default Specific Risk Questions
CCH Audit Automation
CCH Audit Automation allows specific risk questions to be defined for each audit area, however, this is not mandatory, and if specific risk questions have not been set up for a particular area the default specific risk questions will be used.
To edit the default specific risk questions, load the pack for editing and click on the Specific risk questions option within Risk Model in the Master options list. The system will display the Default specific risk questions dialog which contains a list of the first lines of the questions currently defined. This list can be scrolled using the scroll bar or the navigation buttons, and a question selected by clicking on its first line.
Up to 99 default specific risk questions can be defined and they are added, edited and deleted as described for the inherent risk questions on page 62.
The system uses a look up table combining specific and inherent risk for each audit area and details of how the table operates, and how to edit it, are contained on page 74 of this manual.
Related documents
Inherent Risk Questions
This document outlines the process for assessing inherent risk in clients through a systematic approach of questions. The system can store up to 99 risk areas, each containing 99 questions, which are assigned point scores for "Yes" and "No" answers. It details steps for editing, adding, and deleting risk areas and questions, including interface navigation and confirmation prompts. Additionally, it emphasizes that once numbers are assigned to risk areas or questions, they cannot be changed. The document serves as a guide for managing inherent risk assessments effectively.
Audit Risks
This document details the functionality of CCH Audit Automation for recording Identified Audit Risks, also referred to as Significant Business Risks. It provides instructions for users to add, edit, and manage risks, including features for maintaining risks for future audits, assessing their significance, and linking them to assertions. The system includes tools for risk assessment, audit response, and documenting conclusions. Other functionalities encompass risk summarization, printing options, and risk linkage across multiple sources, enhancing the audit process's efficiency and accountability.
Risk/Sample Selection
This document outlines the concept of audit risk, defined as the likelihood of undetected material errors during an audit. It introduces a risk model used in Audit Automation that requires total audit risk to remain below acceptable levels across various audit areas. The risks are broken down into inherent risk, control risk, and detection risk, with further subdivisions for detection risk. It emphasizes the importance of understanding these concepts to design effective audit procedures and assess risk at different levels. Additionally, it discusses general and control environments, and the calculation of residual risk, alongside a risk scoring system.
Inherent Risks
The document outlines the procedure for addressing inherent risk questions in an audit context. Users can access a dedicated window to view up to 99 risk areas, answer questions, and modify responses as necessary. The system prompts users to validate changes to ensure proper risk assessments. It includes functionalities for viewing prior comments, copying text, and overriding calculated risk levels, emphasizing that auditor judgment is crucial. Comments on overrides must be provided to rationalize any adjustments made. The document serves as a guide for navigating and utilizing the auditing software effectively.
Default Identified Risks
This document outlines the process for authors of master packs to define, edit, and manage default identified risks applicable to linked clients. It details how these risks are automatically included in new client profiles but not in existing ones. Users can add, edit, or delete risks, with specific instructions on customizing risk profiles, justifications, and associated assertions. The document also includes guidance on printing identified risks. Overall, it serves as a comprehensive guide for managing risk documentation within the master pack system.