Audit Risk (Audit alertness)

- Auditor should not be indifferent

- Auditor is responsible for any future happenings
- All care should be taken to ensure that nothing is lost sight of
- Auditor should be very vigilant to detect frauds
- Un authenticated erasures and alterations in account records should be
critically verified and enlightened
- Use of photo copies of documents for payments should not be allowed
- Missing vouchers, missing receipts should be detected and reported
- Should see that there is no unusual/doubt full accounting entry
- Discrepancy between control total and subsidiary records should be
brought to notice
- Manipulation of accounts records to conceal mis appropriation should be
dealt with very seriously
- Retention of heavy cash balances should invariably be observed
- Undue delay in remitting the cash received in to the bank should also be
found out.