December 18, 2012
Risk is a concept used to express uncertainty about the event. In performing an audit, an auditor faces different kinds of risks like engagement risk and audit risk. He/she needs to bring these risks to an acceptable level. He/she needs to manage these risks. Our last quiz for the year 2012 covers the chapter about risks. And taking that quiz faces many risks. Having a new book at the middle of the semester especially a foreign authored book is a big change for me. Though the book was comprehensive but the thought that it is new, one should adjust. During the quiz, the first question comes blank to me. I first thought have I read about this or have I heard about this. Next question was an easy one but the next questions makes my eyes blur for I had no idea. Because of this, I remembered one advice, to start at the back for it might be easier. But when I started reading, a big question mark is still there. I kept patient. I did elimination method to at least answer the quiz. After 30 minutes, I’ve finished a 20 items theory quiz with a lot of sweat. In this quiz, I’ve only got 12 correct answers over 8 wrongfully answered items. In audit, risks may result in material misstatements; the management is responsible for keeping the financial statements free of material misstatements. The management needs to have an effective risk management and control system that prevents material misstatement. Just like in my studies, I am the only one who could management the risk attributed to my studies. I need to study well and face the changes as fast as I could. Be prepared always.
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