Question Two

An audit team is in the process of preparing the annual Audit plan. You have been assigned the task of undertaking risk assessment. Kiprotich, a newly recruited audit trainee, argues that there is no need for risk assessment or even the whole audit planning process. He is convinced that the two exercise add no value to the output of the audit assignment.

Required:

1. Explain five justifications for undertaking audit planning. (10Mks)

1. Distinguish between qualitative and quantitative risk assessment techniques. (10Mks)