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This standard was withdrawn in 2004, and has been replaced with the ISA 315, “Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement” and the ISA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)
“Personal change, growth, development, identity formation—these tasks that once were thought to belong to childhood and adolescence alone now are recognized as part of adult life as well. Gone is the belief that adulthood is, or ought to be, a time of internal peace and comfort, that growing pains belong only to the young; gone the belief that these are marker events—a job, a mate, a child—through which we will pass into a life of relative ease.”
—Lillian Breslow Rubin (20th century)
““Have we any control over being born?,” my friend asked in despair. “No, the job is done for us while we’re sleeping, so to speak, and when we wake up everything is all set. We merely appear, like an ornate celebrity wheeled out in a wheelchair.” “I don’t remember,” my friend claimed. “No need to,” I said: “what need have us free-loaders for any special alertness? We’re done for.””
—Marvin Cohen, U.S. author and humorist. The Self-Devoted Friend, New Directions (1967)