which exceeds materiality of $50‚000. c. The auditor should either propose an audit adjustment so that the unadjusted statement amount is less than materiality‚ and/or perform more testing to obtain a better estimate of the population misstatements. The additional testing will likely focus on receivables and inventory because they have the largest estimated misstatements. 9-28 a. The following terms are audit planning decisions requiring professional judgment: Preliminary judgment about materiality
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Q1 - What is the relationship between the risk assessment process and the collection of audit evidence? The risk assessment process happens at the very beginning of the engagement and is to determine the level of risk present in the company. The risk assessment phase is when the auditor assess the client’s situation‚ conducts an independence threat analysis and decides whether to accept the client or not. The risk assessment is influenced by various factors such as the degree to which external
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456 Chapter Eleven Appendix 11B Illustrative Audit Case: Keystone Computers & Networks‚ Inc. Part III: Substantive Tests—Accounts Receivable and Revenue This part of the audit case illustrates the manner in which the auditors design substantive tests of balances. The substantive tests are illustrated for two accounts—receivables and revenue. This aspect of the audit is illustrated with the following audit documentation: • ABC’s risk assessment working paper that combines the auditors’ assessments
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1 Chapter 7: Audit Evidence I. Definition: Evidence – information used by the auditor to draw conclusions on the fair presentation of the financial statements. Audit objectives suggest the types of evidence to accumulate. II. Decisions on evidence accumulation A. Which audit procedures to use. General Objectives: Six TRAOs Eight BRAOs Four PDAOs Accounting Cycles: Five Management Assertions Specific Objectives: At least: Six TRAOs Eight BRAOs Four PDAOs Audit Procedures: At least one
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theft. D. Expected effectiveness of controls. 13. The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does not exist in an account balance when‚ in fact‚ such misstatement does exist is referred to as A. Audit risk B. Inherent risk C. Control risk D. Detection risk 14. Evidential matter concerning proper segregation of duties ordinarily is best obtained by A. Preparation of a flowchart of duties performed by available personnel. B. Inquiring whether
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Based on the novel choose a character who faces challenges with courage. Explain why you have chosen him/her with examples from the text. Step By Wicked Step A character who faces challenges with courage in ‘step by Wicked Step’ By Anne Fine is Pixie. In the conflict between Pixie and her stepmother Lucy‚ Pixie quarrels with her stepmother after her stepsister Hetty complains to Lucy about Pixie’s semi-silent treatment of her. Pixie is jealous of Hetty and does everything possible to get her
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STEP BY WICKED STEP Themes ~ Step By Wicked Step Family relationships Coping with new family members for example Pixie understands that her new stepmother is having as much trouble ‘adjusting’ as she is. Family unity The nucleus of moral values‚ “the family unit‚” is being invaded by outsiders (‘step’ or ‘steps’) and this causes disharmony. Dealing with adversities Young children and adults may find difficulties dealing with frustrations‚ fears and sadness. Being happy ‘Life has
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Colin’s Story: The Bluebird of Happiness- Colin describes his stepfather whom he calls dad. He has thought of him as his biological father all the while. His dad looks like him. His dad has dark hair with some grey patches around his ears. His dad used to roll his own cigarettes out of tobacco in a tin. His dad calls him by many nick names- Col‚ Collie‚ Sonny-boy‚ Buster‚ Mr Bluebird. Colin’s mum works in a shop. His dad walks him to school and back. His dad got him his tea and took him to the park
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assertions and audit objectives - Define management assertions and the related audit objectives - Describe management assertions related to class of transactions‚ balances and presentation and disclosures - List out and describe general transaction related audit objectives‚ balance related audit objectives and presentation and disclosure audit objectives - Understand specific audit objectives and how they are linked to general audit objectives and management assertions Topic 4 – Audit evidence
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made the decision to purse an instant messaging program based on three factors: the increasing popularity of instant messaging‚ the need for a cost effective way to add frequency to the company ’s traditional marketing communications‚ and the need to prepare the company for online marketing tools (such as e-mail‚ becoming ineffective). Through advanced programming‚ RecipeBuddle is able to instantly recognize and respond appropriately to requests as chicken‚ no garlic. Furthermore‚ RecipeBuddle
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