Day: March 20, 2022

The main difference between qualitative and quantitative risk assessment is that the former uses a relative or descriptive scale to measure the probability of occurrence whereas quantitative analysis uses a numerical scale. For example, a qualitative analysis would use a Read More …

A HAZOP study identifies hazards and operability problems. The concept involves investigating how the plant might deviate from the design intent. If, in the process of identifying problems during a HAZOP study, a solution becomes apparent, it is recorded as Read More …

Risk assessment is the appraisal of probability and significance of identified potential risk events. It means asking how likely is it and how bad will it be if certain risk events happen. Risk is quantified using the formulae: Risk = Read More …

When auditing computerized information systems, it will be found that much reliance is placed within the system upon standard forms and documentation in general, as well as upon strict adherence to procedures laid down. This is no surprise, of course, Read More …

In the selection of representative or randomly chosen transactions or items for audit tests. The scrutiny of files and selection of exceptional items for testing. E.g. On wages payments over Shs.1000 or all stock items worth more than Shs.100,000 in Read More …

The auditor tests the internal controls when he wishes to place reliance on the controls to determine whether the accounting records are reliable. A computerized information system may differ from a manual system by having both manual and programmed controls. Read More …