Management Of Patients Referred Low Risk - Myassignmenthelp.Com

Question: Discuss About The Management Of Patients Referred Low Risk? Answer: Introducation Financial risk: it will translate in audit risk in case the Companys cash flows are inadequate to fulfill the financial obligations. This will make shareholders to lose money which they initially invested in the company. When the auditor realizes that the financial statement is incorrect because of the cash flow, he/she will give a clear report of the fact stated (audit risk) ((William, Glover and Prawitt 2016)). Expansion Risk: This translate into audit risk in a situation where the Manager of the company has less information and are unable to understand the risk associated with growing businesses. When the cost of growing increases, profit of the business will remain constant or falls and this will make financial statement incorrect. Hence, the auditor will give the audit risk to help him in his final report. Information technology risk: Companies that relies on IT systems in performing daily activities faces threat in their system and if not address may make them perform at a loss. If the threat affects the finance department it may interfere with the actual data available and hence, the financial statement will be incorrect. Auditor may then use the audit risk collected to give a report of his/her opinion. Cyber security RISK: This is a business issue because most of the companies are more digitized which means they are exposed to many number of threats. Therefore, they mostly encounter risk of security. Modern technologies are providing more advance tools which are being used to attack the business. The auditor may detect these items and translate them into Audit risk (Hayes, Wallage and Gortemaker 2014). Project Risk: These are uncertain events which when occur cause an effect on the performance of project objectives. Some of the events can be controlled by the organization but some may originate from external and therefore cannot be easily identified by the organization. The auditor will therefore use the available information in the audit risk to in order to give a clear standing of the organization. Effects on Audit Assessment of Audit Risk Audit risk is that risk which the auditor could issue an unqualified report because of the failure of the auditor to detect substantial/material misstatement because of fraud or error. In this case, the auditor expresses an inappropriate opinion on financial statement. In other words, the auditor issues the incorrect opinion on financial statements. Examples include issuing an unqualified audit report whereby a qualification is justified reasonably; issuing a qualified audit opinion whereby no qualification is essential; failing to stress a substantial matter in audit report and provision of an opinion on financial statement whereby no such opinion could be given reasonably because of a material limitation of audit performance scope (Hayes, Wallage and Gortemaker 2014). The audit risk has three elements or components including inherent risk, control risk and detection risk. This can be caused by various factors including financial risk, expansion risk, ICT risk, cyber security risk a nd project risk. The effects of these factors on the audit risk assessment is detailed below: Financial Risk The assessment of audit risk is greatly dependent on financial risk. For example, in concealment in this type of risk will automatically increase the likelihood of audit risk as the audit directly fail to get material facts (Allen and Hilton 2017). For instance, where the credit risks element is not disclosed, the audit may not know the credit of the firm and hence issue unqualified audit report. Expansion Risk As the business expands, much risk are associated with the expansion. Therefore, where the organization conceals or doses not disclose these risks, the audit will have no option in assessing them and hence provide an unqualified audit report which may not necessarily reflect the true picture of the audited firm. Information Technology Risk The ICT development puts the audit work in both threats and psychology. For example, manager might use advanced technologies to conceal some materials facts in their financial statements thereby leading to auditor lacking such information that would otherwise be helpful to present a true picture of the company (Cohen, Krishnamoorthy, and Wright 2017). Cyber Security Risk The cyber security risk greatly influence the audit work. For example, the audit might not know what these are doing parallel to the period of auditing. Therefore, the audit will issue a report which lacks the information on the effect of cybercrime. Thus, the audit report will never be a true reflection of the firm. Project Risk Audit work is greatly affected by the project risk. As the business is involved in a new project, the information about the project might be scanty hence misleading the audit. In this case, the likelihood of giving audit risk will be higher as compared to establish project that has all the risks already identified (William, Glover and Prawitt 2016). References Allen, C. and Hilton, D., 2017, November. Local audit of the assessment and management of patients referred to the low risk TIA clinic at Heatherwood Hospital. InINTERNATIONAL JOURNAL OF STROKE(Vol. 12, pp. 57-57). 1 Olivers Yard, 55 City Road, London Ec1y 1sp, England: Sage Publications Ltd. Cohen, J., Krishnamoorthy, G. and Wright, A., 2017. Enterprise risk management and the financial reporting process: The experiences of audit committee members, CFOs, and external auditors.Contemporary Accounting Research,34(2), pp.1178-1209. Hayes, R., Wallage, P. and Gortemaker, H., 2014.Principles of auditing: an introduction to international standards on auditing. Pearson Higher Ed. William Jr, M., Glover, S. and Prawitt, D., 2016. Auditing and assurance services: A systematic approach. McGraw-Hill Education.