Risk assessment procedures
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Sources of information
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Analysis of relationships in and between financial and non-financial information, through a study of plausible relationships, including trends and ratios. Examples include comparison of actual information against budget, licence income to number of licences, and import duties to physical import data. |
- Financial and non-financial information, in order to provide a broad initial indication of unusual or unexpected relationships.
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Inspection consists of examining records or documents, whether internal or external, in paper form, electronic form, or other media, or tangible assets. |
- Visits to the entity's premises and facilities
- Internal documents - management plans, records, manuals
- Other information - the auditee's budget; AAR
- External information- economic journals; regulatory and financial publications
- Findings from previous audits by the ECA, the Internal Audit Service (IAS), the Supreme Audit Institutions (SAI), the Commission’s anti-fraud office (OLAF), or the European public prosecutor’s office (EPPO)
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Observation consists of looking at a process or procedure being performed by others. It provides information about the performance of the process or procedure, but is limited to the point in time at which the observation takes place. |
- Observation of entity activities and operations being carried out
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Inquiry consists of seeking information of knowledgeable persons, inside or outside the audited entity. |
- Those charged with governance, management and others within the entity
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