Identifies and manages the risks of failing to detect a misstatement, caused by inadvertent error or fraud that is material to financial statements.
- Identifies risks of negative outcomes (including fraud)
- Evaluates controls that mitigate risk of negative outcomes through prevention or detection and correction
- Assesses and controls unmitigated risks through various methods (e.g., designing and applying tests)
- Communicates the impact of identified risks and recommends corrective action
Developmental opportunities for this competency are available from the NIH Training Center.