ISA 400 Risk Assessments and Internal Control is one of the International Standards on Auditing. It serves to require the auditor is to understand the client's accounting system and internal control system and to assess control risk and inherent risk. The objective is to determine the nature, timing and extent of substantive procedures in order to reduce audit risk to an acceptable low level.
This standard was withdrawn in 2004, and has been replaced with the ISA 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement” and the ISA 330, “The Auditor’s Procedures in Response to Assessed Risks”
Famous quotes containing the words risk, internal and/or control:
“It cannot in the opinion of His Majesty’s Government be classified as slavery in the extreme acceptance of the word without some risk of terminological inexactitude.”
—Winston Churchill (1874–1965)
“Even if fathers are more benignly helpful, and even if they spend time with us teaching us what they know, rarely do they tell us what they feel. They stand apart emotionally: strong perhaps, maybe caring in a nonverbal, implicit way; but their internal world remains mysterious, unseen, “What are they really like?” we ask ourselves. “What do they feel about us, about the world, about themselves?””
—Augustus Y. Napier (20th century)
“The human mind is indeed a cave swarming with strange forms of life, most of them unconscious and unilluminated. Unless we can understand something as to how the motives that issue from this obscurity are generated, we can hardly hope to foresee or control them.”
—Charles Horton Cooley (1864–1929)