The Quality Assurance partner at your audit firm, Checkitt ltd., has noted some confusion amongst the graduate trainees

The Quality Assurance partner at your audit firm, Checkitt ltd., has noted some confusion amongst the graduate trainees there regarding the process of risk assessment and its importance in the audit. It has been decided that a memo will be issued to all junior members of staff within the firm explaining this process.

Required: As an audit manager at the firm, you are responsible for preparing the memo explaining the risk assessment process and its importance to the audit. This should be in a concise format using non-technical language.

The evaluation should include consideration of: • Relevant ISAs

• The impact of materiality • Risk assessment procedures • The concept of ‘professional scepticism’ Notes: – Word Count: Maximum of 1,100 words, excluding References. – Numbluver of Reference: 15 – 20