BrookWeiner Risk Assessment Services
In the broadest sense, a risk assessment study entails a review of a company's operations in order to determine the financial and operational areas that present the greatest risk to the company for fraud, errors, and operational inefficiencies. Once identified, the independent auditor, under SAS 99 requirements, would adjust the scope of the audit examination to expand scope and procedures into the areas of highest risk.
The amount of emphasis on defining, evaluating and testing for risk assessment by auditors varies significantly between CPA firms. Frequently, the degree of focus in many cases relates to the audit fees that can be charged and the comfort level that various auditing firms have in undertaking such assessments. Regardless of the extensiveness of such studies, their impact on audit fees has been significant, and not surprisingly, businesses want more benefits from expanded procedures in order to justify the additional costs.
A comprehensive risk assessment study can be done as a project separate from the annual audit. Once completed, the independent auditor can limit SAS 99 procedures to reviewing and testing the study.
BrookWeiner has been undertaking such studies for both its audit clients and as stand-alone projects for non-audit clients. Our team of CPAs and CFEs (Certified Fraud Examiners) provide this service directly to family and mid-size businesses and also as sub-contractors of other CPA firms. Our team of experts can make the process both efficient and effective.