Abstract The article focuses on the author's views on the current practice of auditing. According to the author, practice is moving very rapidly in dealing with risk. Most of the large firms have introduced new audit methodologies and most of these are driven by risk-based modules. High risk covers a number of areas including management integrity, organization and management structure, financial results, viability, nature of the business, business environment, business relationships and the lack of prior knowledge or experience with the high risk client. In those situations where high risk clients are identified, a second partner has to be assigned to the engagement and the second partner has to be very active in ensuring that the engagement is properly completed. The second partner assists by looking at the terms of the engagement, the appropriateness of staffing, the key planning decisions including the determination of materiality and risk, determination of overall approach, scope of work in key areas. It also includes resolution of significant findings, presentation and disclosure, accuracy of documentation and professional communications.
Don Craig (Wed,) studied this question.