Ch 3 · Audit + Internal Control + Risk

5 concept points · 0 formulas · 4 exam-critical points.

📘 Core concepts

• 1Audit response to identified risk: ToC + substantive procedures.
• 2Internal Financial Controls (IFC) reporting under Sec 143(3)(i) — judgement & disclosure.
• 3Fraud risk: SA 240 — auditor's response (revenue presumption, management override).
• 4Forensic audit triggered by red flags — separate engagement, not statutory audit.
• 5ESG audit / Business Responsibility Sustainability Reporting (BRSR) — emerging assurance area.