You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten ‘engagement risk’ as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them
You have been approached by the financial institutions Databank Financial Services Limited and Blackstar holdings limited to be their auditors. a. Iterate the factors that can heighten ‘engagement risk’ as auditors for either of this companies and what kind of information you will require to guide your decision. b. Assuming you consider a risk-based strategy as an effective audit strategy for executing your mandate, what are the probable areas of risk you will focus on and how will you test for them
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You have been approached by the financial institutions Databank
Financial Services Limited and Blackstar holdings limited to be their
auditors.
a. Iterate the factors that can heighten ‘engagement risk’ as auditors
for either of this companies and what kind of information you
will require to guide your decision.
b. Assuming you consider a risk-based strategy as an effective audit
strategy for executing your mandate, what are the probable areas
of risk you will focus on and how will you test for them?
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