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This standard was withdrawn in 2004, and has been replaced with the ISA 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement” and the ISA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:
“The risk for a woman who considers her helpless children her “job” is that the children’s growth toward self-sufficiency may be experienced as a refutation of the mother’s indispensability, and she may unconsciously sabotage their growth as a result.”
—Letty Cottin Pogrebin (20th century)
“A State, in idea, is the opposite of a Church. A State regards classes, and not individuals; and it estimates classes, not by internal merit, but external accidents, as property, birth, etc. But a church does the reverse of this, and disregards all external accidents, and looks at men as individual persons, allowing no gradations of ranks, but such as greater or less wisdom, learning, and holiness ought to confer. A Church is, therefore, in idea, the only pure democracy.”
—Samuel Taylor Coleridge (1772–1834)
“There has been something crude and heartless and unfeeling in our haste to succeed and be great. Our thought has been “Let every man look out for himself, let every generation look out for itself,” while we reared giant machinery which made it impossible that any but those who stood at the levers of control should have any chance to look out for themselves.”
—Woodrow Wilson (1856–1924)