Each year, your auditor will conduct a fresh risk assessment. Audit risk is a function of three components: 1) control risk, 2) inherent risk, and 3) detection risk. The first two risks stem from a company’s industry and actions. The last one can be managed by the audit team through substantive audit procedures. Before the start of fieldwork, let’s discuss changes to your risk factors. We’ll adjust our audit programs accordingly to ensure that your financial statements are prepared with the highest level of quality and efficiency.
