In conducting audits, we should always be alert to the potential of serious criticism. Failing to follow up on a sensitive area could not only cause us to miss a finding, but it may also result in major damage to our audit organization.

Auditors are used to assessing risk when they conduct external audits.  Indeed, we must assess risk in order to meet AICPA standards (GAAS) and Yellow Book standards. The standards require auditors to consider the risk to the entity and the areas being audited.  [Read more]