Understanding the client - business processes

Question 1

process risk analysis consists of

Answer 1

• identify key processes
• understanding purpose of information systems, data flows and transactions of key processes
• identify process risks
• evaluate process risks

Question 2

process risks analysis transactions

Answer 2

• routine transactions
• non-routine transactions (incidental discounts)
• accounting estimates

Question 3

prioritize risks

Answer 3

• likelihood of potential risks
• magnitude of potential risks