Identifies and manages the risks of failing to detect a misstatement, caused by inadvertent error or fraud that is material to financial statements.
Key Behaviors
- 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.