Chapter 5

The risk-based
approach to audit:
audit judgement

Use with The Audit Process: Principles, Practice and Cases, 6th edn
ISBN 978-1-4080-8170-9 © Iain Gray, Stuart Manson and Louise Crawford, 2015
Figure 5.1 Components of audit and business risk

Use with The Audit Process: Principles, Practice and Cases, 6th edn
ISBN 978-1-4080-8170-9 © Iain Gray, Stuart Manson and Louise Crawford, 2015
Figure 5.2 Organization Chart of County Hotel Limited

Use with The Audit Process: Principles, Practice and Cases, 6th edn
ISBN 978-1-4080-8170-9 © Iain Gray, Stuart Manson and Louise Crawford, 2015
 The important ISA in the area
1. ISA 200-Overall Objectives of the Independent auditor
and the Conduct of an Audit in Accordance with ISA
2. ISA 315-Identifying and Assessing the Risks of Material
Misstatement the Entity and its Environment
3. ISA 330-The Auditor’s Responses to Assessed Risks

Use with The Audit Process: Principles, Practice and Cases, 6th edn
ISBN 978-1-4080-8170-9 © Iain Gray, Stuart Manson and Louise Crawford, 2015