Ch 3 · Audit + Internal Control + Risk

📘 Core concepts

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