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Explain the auditors’ obligations with regards to understanding theclient’s business and internal controls, and assessing businessrisks

Identify and distinguish between tests of controls, substantive tests oftransactions and substantive tests of balances.1.2- Identify and understand when the auditor will undertake substantiveaudit procedures in response to specific assessed risks of materialmisstatement.1.3- Understand how assertions relate to account balances1.4- Understand how to select the most efficient and effective combination ofaudit procedures that allows them to achieve the audit objective1.5– Active participation in an “audit team context” with professionalgroup discussionsThe following Unit Learning Outcomes are applicable:1. Demonstrate a thorough understanding of the reporting requirements ofauditing standards relating to auditors’ reports.2. Explain how the audit planning process directs the auditor to obtainadequate evidence to support audit findings and address the importance ofmateriality in an audit;3. Explain the process of audit planning to determine risk assessments andan overall audit strategy;4. Explain the auditors’ obligations with regards to understanding theclient’s business and internal controls, and assessing businessrisks.5. Achieve a high level of competence in applying prescribed auditingtechniques in gathering evidence to satisfy audit assertions

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