SPECIFIC CHARACTERISTICS OF FINDING NON-DETECTION RISK ON THE AUDIT OF INTANGIBLE ASSETS IN AUDIT INSPECTION

Abstract

This study analyses the methods for identifying non-detection risk, which is regarded as a component of assessing audit risk, in detail. The paper conducts its research on industrialized nations with advanced accounting and auditing professions. The research work employed the methodologies of observation, data collecting, generalization, grouping, comparison, and monographic observation. In the course of the audit, the auditor writes and completes a questionnaire on control tests to identify non-detection risk of the client-enterprise. The purpose of this is to prevent client firm employees from using subjective auditing methods. The high, middle, and lower classes of assessing the risk levels are emphasized in a categorized manner based on the economic processes performed and being performed in the business entity in the control tests created by the auditor. We believe that when the concept of importance (materiality) is assessed in terms of amount (percentage) and quality, these indicators are only transferred to the indicator of amount (percentage). Based on calculations, one of them is a separate internal economic risk (IR), control risk (CR), and non-detection risk (DR), and it is appropriate to attribute the reduction of this amount to the proportional reduction of these risks. We think that the auditor must make multiple attempts to reduce the audit risk and important indicator values to the absolute minimum before this can be accomplished.