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Monday, February 24, 2014

The Auditor's Dilemma Part 1

Perhaps one of the largest dilemmas auditors face is being able to give stakeholders of any business they audit a level of confidence that they have captured and assessed 'all' material risks that threaten the company. A thumbs up if you prefer after an audit has taken place that the audit went well and the results are sound.

If risk is the effect of uncertainty on objectives, as the ISO 31000 global risk standard states it to be, it follows that senior managers often expect auditors to report on their coverage during a risk assessment exercise. They may also be keen to know what additional uncertainty may remain once the audit report has been published.

In this blog posting we are going to describe the auditor's dilemma and in future blog postings we will untangle this paradox. 

Tuesday, February 18, 2014

Market Risk Implied or Inherent

To extend on from our previous article on inherent risk [ LINK ] we will dive a little bit deeper into the importance of inherent risk using an example from the domain of market risk measurement.