Scope of Work
1.Substantial risk assessment: auditors build up a detailed understanding of the business so that they can highlight and assess the key areas in the financial statements most at risk of material misstatement;
2.Evidence-gathering: focusing their efforts on the identified higher-risk areas – eg, revenue, debtors, inventory and the valuation of assets and liabilities – auditors look for material misstatements, regardless of how they are caused;
3.Reporting: auditors report their opinion to the shareholders.