Auditing question

beavis182

'What are the main areas of a clients business that the auditor would consider when evaluating the risk level of that business?'

What does that even mean?

PGM

Depends on the business.

A lot of it is common sense, consider the area in which it operates, risks specific to the type of trade, and then general risks.

whether they be controls, financial, legal, theft, or all the management risks of independance etc.

beavis182

so for Accounting environment is would be things like
payroll - correct employee details
correct calculations
credit control - transaction testing
purchase ledger - payment of invoices
transaction testing

Things like that??