CCH Learning Center

Audits: Controlling the Risk

Audit risk means that an auditor may inadvertently certify a company's financial statements as being fairly stated when, in fact, the statements are materially misleading. Recent accounting scandals have made the public more aware of the failures and limitations of the auditing profession.

Auditors have also become more aware of the high costs of giving the correct answer. The Auditing Standards Board of the AICPA has issued an Exposure Draft, Proposed Statements on Auditing Standards, December 2, 2002.

If adopted, these new standards will materially change the auditor's responsibilities and procedures with respect to audit risk. This course provides an overview of these proposed rules.