Audit Documentation

Documentation refers to working papers kept by the auditor as regards audit planning, procedures performed, information and explanations obtained from client and conclusions drawn from the work performed.

Objectives of Documentation:
1: Assist in planning and performance of audit
2: Assist in supervision and review of audit work
3: Record the audit evidence resulting from the audit work performed to support the auditor's opinion , including representation that the examination was conducted in accordance with the International standards on auditing…!

Example of Risk Assessment

Chemical substances have many different properties and many different uses. Some are used to make plastics flexible, some put out fires quickly and efficiently, some are products of common chemical reactions that occur naturally in the environment (such as a volcanic eruption) - still others form part of our day-to-day activities, such as driving a car.

In the same way that chemical substances have different uses, they can also be harmful in different ways. For instance, some may harm plants, while some may cause very serious illnesses in people such as cancer. Still others may be carried long distances through the air and affect people far away.

The risk posed by a chemical substance is determined by its hazardous properties and how or where exposure takes place. A scientific evaluation, or "risk assessment," is required to determine details on those hazardous qualities, and the specific ways people or the environment can be exposed.

Risk Assessment

Risk analysis is the process of defining and analyzing the dangers to individuals, businesses and government agencies caused by potential natural and human-caused adverse and unwanted events. In IT, a risk analysis report can be used to align technology-related objectives with a company's business objectives. A risk analysis report can be either quantitative or qualitative.

In quantitative risk analysis, an attempt is made to numerically determine the probabilities of various adverse events and the likely extent of the losses if a particular event takes place.

Qualitative risk analysis, which is used more often, does not involve numerical probabilities or predictions of loss. Instead, the qualitative method involves defining the various threats, determining the extent of vulnerabilities and devising countermeasures should an attack occur.

What is Risk

Risk is the potential that a chosen action or activity will lead to a loss (an undesirable & unwanted outcome). The notion implies that a choice having an influence on the outcome exists (or existed). Potential losses themselves may also be called "risks". Almost any human endeavor carries some risk, but some are much more risky than others.