Is the Audit Risk Model always correct? A deep dive into the detection risk matrix

[@7Cdabs]

Hello Amanda! Please don't ever take any of your lectures down from this channel. Your lectures have helped me clear my CA Intermediate exams in India. Thank you very much teacher! 😊

[@amandalovestoaudit]

They’re staying up!

[@ankitasaxena5891]

Haha. Is it! Congratulations 👏

[@jennifert2822]

Hi Amanda, watching from Botswana 🇧🇼 I did not think I would ever understand audit untill I found your videos

[@sampurnadutta9051]

Hi Amanda! Hope you are doing greaaaat! I got a job at Deloitte with the help of your videos.. They are just so good! This is my very first job and I am very happy and excited! Thank you so much! ❤❤

[@amandalovestoaudit]

OMG how amazing - congrats!!!!!

[@sampurnadutta9051]

@@amandalovestoaudit thanks again 🥰

[@evans2786]

Happy to be the first viewer @Amanda. Thank you for this video 🙏. Very insightful

[@amandalovestoaudit]

You’re welcome Evan, and thanks for leaving a comment ☺️

[@Bakhtiyar_Khan]

Thank you so much Amanda for your videos. Here in India I got job at big4 by watching your videos and able to crack the technical rounds of interview. At one moment I have 3 offer letters. Not only me. There are N number of people who got placed at Deloitte, KPMG, PwC, EY, BDO and still counting the names. Thank you so much from Indians. We just love the way you teach. ❤️ I couldn't find you on LinkedIn that's why commenting down here. You are the best !

[@amandalovestoaudit]

That is so amazing to hear Bakhityar 🎉🎉🎉

[@YvonneRossouw]

Hi Amanda. I agree with your analysis, but I would like to know, how do you think the new revised ISA 315 will impact on this model? I do believe that it may have solved the issue, because of the way controls and the Test of COnt5rols now influence risk. Your thoughts?

[@chrisaghaegbuna]

Always nice to listen to you. Thanks and keep up with the good work.

[@amandalovestoaudit]

Thank you Chris ☺️

[@Nucleus_Journey]

Dear Amanda, Trust you are doing good. Thanks for the video. However, could you please elaborate more on Preventive and Detective Risk from the ITGC point of view?

[@puremathematics8683]

detection risk is one of component of the audit risk audit risk = risk of material mistatement + detection risk audit risk = inherent risk + control risk + detection risk edit : pls correct me if i am wrong

[@fredjr2927]

Remove + put ×

[@eyempty]

@@fredjr2927 The use of the x sign exaggerate the risks where in some cases we face very low or no risks that recommends the use of + sign (needs an intellectual review)

[@amandalovestoaudit]

Fred is spot on 👍

[@poyyx7486]

It is GREAT!!! A compliment from MALAYSIA.

[@amandalovestoaudit]

Thank you!

[@eyempty]

Thanks ever my Audit Guru. The use of the x sign exaggerate the risks where in some cases we face very low or no risks that recommends the use of + sign (needs an intellectual review)

[@amandalovestoaudit]

the + doesn't quite work theoretically - I've seen options of Audit Risk = f(IR, CR, DR) - but I'm not sure that is much better!

[@eyempty]

@@amandalovestoaudit Sorry for the late reply our able audit guru Just suggesting another option where the risks are low or negligible in considering the numbers tag to the audit risk model and having 1, 2, & 3 as low, moderate & nigh risks levels respectively. Thanks ever!

[@eyempty]

Thanks ever Dr. Amanda White. Can risks (audit or others) be quantified in real terms? What is consider a low, medium or high risk practically that negatively affects the entity? Are there super and asterisk risks? Blessed Amanda!

[@davefuster_beubet]

Hi Amanda, nice material!. I have a qq for you - I have this conversation with my CFO about the definition of the control owner for SOx implementation. I claimed that a control owner is either the person who performs the control or the responsible to oversee it works properly, the CFO says the control owner must be limited to someone with managerial role only. Could you please give me some clarity about it? Thanks/David

[@amandalovestoaudit]

Hmmm - I’m not a SOX specialist - but the information here seems to suggest that there is someone in mgmt who must be responsible for that work area www.imanet.org/-/media/c001afa6a16d4e0a90d6a49eb77f46e1.ashx

[@zenmemo]

Hi David, the SOX control owner is the one who oversees the control, usually labeled as the Control Reviewer; the other person preparing the control is usually not the owner. As for whether it needs to be a managerial role, that's up to management's discretion. When we think of SOX ownership, we think of accountability, authority, and competence. Sounds to me that your CFO would feel more comfortable that the control ownership reside at the manager level which is generally closer to the norms of the industry. Hope that helps.

[@davefuster_beubet]

@@zenmemo thanks for the clarity brought, it was very insightful

[@amirazlanabdulkarim8780]

hi Amanda. hope you doing great. how the AR could be related to accounting standards in a simple way to understand? i could relate AR or ROMM for normal acctg std like PPE, Impairment or PPE but when come to difficult acctg std like IAS19 Employee Benefit (of which juz appeared in ACCA AAA paper recently and I sucked) or like IAS39 Financial Instrument?

[@amandalovestoaudit]

Hi Amir - it does become more difficult - but the better you know the accounting standard and how it applies in practice, the easier it will be to figure it out from the audit perspective. I always use IFRS Box on KZbin to help me understand the accounting side ☺️

[@amirazlanabdulkarim8780]

@@amandalovestoaudit thanks so much for your reply. really appreciate the gesture. do you mean CPD Box by Silvia? yes, I've been following her videos since 2018 after my lecturer suggested to recap accounting std for AAA paper. maybe the difficulty that i facing right now due to working public sector perhaps. currently my country govt working towards converting from cash accounting to accrual accounting. so not many standards that i could relate to such as IAS19 Employee Benefits, IFRS9 Financial Instrument, IAS12 Deferred Tax etc.. the struggle is real to have a real grasp on these acctg std for heaven sake.

[@hasinarafenoarisoa3747]

Thank you so much! From Madagascar

[@amandalovestoaudit]

Thank you Hasina! 🙏☺️

[@massiveattackdrop]

Hello Amanda and compassionate people...Has anyone seen what happened at the annual dolphin massacre at Faroe islands? People should do something about it...

[@HK2637]

The music is loud at beginning, couldn't hear you speak

[@mokshg]

The background music is too loud.

[@amandalovestoaudit]

Thanks for the feedback Moksh ☺️

[@armandokusuma2501]

2nd Comment 🤙

[@amandalovestoaudit]

Hey Armando!! Thanks 😊

[@ShamimReza-uy5tn]

😍😍

[@amandalovestoaudit]

Thanks Shamim 😊

[@catherinemalindac.n8484]

36th viewer...