Explain three business risk related to the production process and inventories.

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Answer 1

Question

Chapter 12, Problem 37P

a.

To determine

Explain three business risk related to the production process and inventories.

b.

To determine

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

c.

To determine

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

d.

To determine

Suggest auditing procedure if the management is unable to provide control over the risk.

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Answer 2

Question

Chapter 12, Problem 37P

a.

To determine

Explain three business risk related to the production process and inventories.

b.

To determine

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

c.

To determine

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

d.

To determine

Suggest auditing procedure if the management is unable to provide control over the risk.

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Answer 3

Question

Chapter 12, Problem 37P

a.

To determine

Explain three business risk related to the production process and inventories.

b.

To determine

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

c.

To determine

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

d.

To determine

Suggest auditing procedure if the management is unable to provide control over the risk.

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Answer 4

Question

Chapter 12, Problem 37P

a.

To determine

Explain three business risk related to the production process and inventories.

b.

To determine

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

c.

To determine

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

d.

To determine

Suggest auditing procedure if the management is unable to provide control over the risk.

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 37P

a.

To determine

Explain three business risk related to the production process and inventories.

b.

To determine

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

c.

To determine

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

d.

To determine

Suggest auditing procedure if the management is unable to provide control over the risk.

Answer 6

Chapter 12, Problem 37P

a.

To determine

Explain three business risk related to the production process and inventories.

Answer 7

Chapter 12, Problem 37P

a.

To determine

Explain three business risk related to the production process and inventories.

Answer 8

b.

To determine

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

Answer 9

b.

To determine

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

Answer 10

c.

To determine

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

Answer 11

c.

To determine

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

Answer 12

d.

To determine

Suggest auditing procedure if the management is unable to provide control over the risk.

Answer 13

d.

To determine

Suggest auditing procedure if the management is unable to provide control over the risk.

Answer 14

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Answer 15

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Answer 16

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Answer 17

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Explain three business risk related to the production process and inventories.

Solution Summary: The author explains the three business risk related to the production process and inventories, including the inherent risk of material misstatement in the current year’s financial statement.

Explain three business risk related to the production process and inventories.

Explain whether the above-defined business risk would result in the inherent risk of material misstatement in the current year’s financial statement.

Suggest Mr. W course of actions for the inherent risk identified in the above explanation.

Suggest auditing procedure if the management is unable to provide control over the risk.

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Chapter 12 Solutions