Materiality in auditing refers to the significance of transactions, balances, or errors that could influence financial decisions.
Interest rate risk occurs when changes in interest rates impact an organization's financial position, particularly in borrowing and lending.
A compliance audit examines whether an organization is adhering to external laws, regulations, and policies.
The risk assessment component of internal control evaluates and addresses risks that may impact an organization’s objectives.
Risk management involves identifying, assessing, and mitigating risks to ensure organizational stability and success.
The primary objective of an external audit is to ensure financial statements are accurate and comply with accounting standards.
