Prepare a broad audit plan: 1. What material types of transactions and transaction cycles are involved? 2. What are the high-risk areas? 3. What are the low-risk areas? 4. If management faced tremendous pressure regarding the entity’s financial performance, what opportunities might exist for them to engage in fraudulent financial reporting? 5. To what extent do you believe it will be appropriate to reduce assessed control risk? 6. How will audit effort be allocated among geographical areas? 7. What form of auditors’ report do you expect will be issued; what does it mean? 8. Indicate as an appendix to the report how the project team was organized and how it functioned on the project and submit appendix with Team Project.
Prepare a broad audit plan: 1. What material types of transactions and transaction cycles are involved? 2. What are the high-risk areas? 3. What are the low-risk areas? 4. If management faced tremendous pressure regarding the entity’s financial performance, what opportunities might exist for them to engage in fraudulent financial reporting? 5. To what extent do you believe it will be appropriate to reduce assessed control risk? 6. How will audit effort be allocated among geographical areas? 7. What form of auditors’ report do you expect will be issued; what does it mean? 8. Indicate as an appendix to the report how the project team was organized and how it functioned on the project and submit appendix with Team Project.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor
Section: Chapter Questions
Problem 16CYBK
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Prepare a broad audit plan:
1. What material types of transactions and transaction cycles are involved?
2. What are the high-risk areas?
3. What are the low-risk areas?
4. If management faced tremendous pressure regarding the entity’s financial performance, what opportunities might exist for them to engage in fraudulent financial reporting?
5. To what extent do you believe it will be appropriate to reduce assessed control risk?
6. How will audit effort be allocated among geographical areas?
7. What form of auditors’ report do you expect will be issued; what does it mean?
8. Indicate as an appendix to the report how the project team was organized and how it functioned on the project and submit appendix with Team Project.
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