Oditor, Vol II, No. 3/2016

Ljubiša Stanojević[1], Dragan Trivan[2], Oliver Bakreski[3]

Paper received: 11.03.2016.
Paper accepted: 23.11.2016.
UDK: 005.334:657.6


Audit risk is the risk that affects the auditor to form an unqualified opinion on the financial statements which contain a material false information. Audit risk, given that it is a probability categories, can not be fully determined. Although the auditor has documentary evidence, and has experience and expertise, still remains a chance that there are errors or omissions in the performance audit, and therefore a certain risk of audit. In such circumstances, the auditor must identify an acceptable level of overall audit risk and seek reasonable assurance for ranking risks from various sources. Determination of control risk is a function of the effectiveness of internal controls. The better internal control reduces the risk control and vice versa. Control risk can never be zero because internal controls can never be as effective to prevent or detect a material error.

Key words: risk, audit probability, an unqualified opinion.

[1]University Bussines Academy in Novi Sad, Republic of Serbia
[2]University for Bussines Studies, Banja Luka, Bosna and Hercegovina
[3]Alfa BK University, Belgrade, Republic of Serbia