Answer Posted / hemant chugh
A technique to get elaborate understanding of the potential
misstatements - 'what could go wrong', starts from the
origination of the company's processes until it is
reflected in the company's financial records.
Objectives:
- understanding the flow of transactions including how
these transactions are initiated,authorized, processed and
recorded.
- identification of points within the company giving rise
to mistatements and frauds.
- identification of controls implemented to address these
mistatements.
- identification of controls implemented over the
prevention or timely detection.
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