Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 5, Problem 1DQ

To determine

Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Expert Solution & Answer

Explanation of Solution

Risk assessment refers to the estimation of the possibility of the adverse conditions. It may be considered as the analysis of “What is the worst that can happen”. The risk assessment must be carried on based on the ethical tone of the top management, misstatements, frauds and errors. The major objective of risk assessment is to scrutinize the weakest links in the financial reporting controls.

The importance of risk assessment includes the strengthening of the internal control, which reduces the opportunity for fraud. Risk assessment identifies the internal control deficiencies and the sensitive areas of the audit.

The risk assessment enables the auditor to find the material misstatements. This enables the auditor to perform the audit in a more efficient and effective manner.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Ultimate Production manufactures radon detectors. The standard for materials for each detector is 4 pounds of acrylic at a standard cost of $7.30 per pound. During May, the company purchased 975 pounds and used 885 pounds of acrylic, and made 410 radon detectors. The company paid $4.45 per pound for the acrylic. There were 5100 detectors budgeted for May. How much is the material quantity variance?

Please given correct answer for General accounting question I need step by step explanation

Shakira Electronics has received a special one-time order for 900 light bulbs at $7 per unit. Shakira currently produces and sells 10,000 units at $8.00 each. This level represents 80% of its capacity. The production costs for these units are $6 per unit, which includes a $4 variable cost and a $2 fixed cost. To produce the special order, a new machine needs to be purchased at a cost of $1,200 with a zero-salvage value. Management expects no other changes in costs as a result of the additional production. If Shakira wishes to earn $1,500 on the special order, the size of the order would need to be?

Answer 2

Question

Chapter 5, Problem 1DQ

To determine

Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Expert Solution & Answer

Explanation of Solution

Risk assessment refers to the estimation of the possibility of the adverse conditions. It may be considered as the analysis of “What is the worst that can happen”. The risk assessment must be carried on based on the ethical tone of the top management, misstatements, frauds and errors. The major objective of risk assessment is to scrutinize the weakest links in the financial reporting controls.

The importance of risk assessment includes the strengthening of the internal control, which reduces the opportunity for fraud. Risk assessment identifies the internal control deficiencies and the sensitive areas of the audit.

The risk assessment enables the auditor to find the material misstatements. This enables the auditor to perform the audit in a more efficient and effective manner.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 5, Problem 1DQ

To determine

Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Expert Solution & Answer

Explanation of Solution

Risk assessment refers to the estimation of the possibility of the adverse conditions. It may be considered as the analysis of “What is the worst that can happen”. The risk assessment must be carried on based on the ethical tone of the top management, misstatements, frauds and errors. The major objective of risk assessment is to scrutinize the weakest links in the financial reporting controls.

The importance of risk assessment includes the strengthening of the internal control, which reduces the opportunity for fraud. Risk assessment identifies the internal control deficiencies and the sensitive areas of the audit.

The risk assessment enables the auditor to find the material misstatements. This enables the auditor to perform the audit in a more efficient and effective manner.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 5, Problem 1DQ

To determine

Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Expert Solution & Answer

Explanation of Solution

Risk assessment refers to the estimation of the possibility of the adverse conditions. It may be considered as the analysis of “What is the worst that can happen”. The risk assessment must be carried on based on the ethical tone of the top management, misstatements, frauds and errors. The major objective of risk assessment is to scrutinize the weakest links in the financial reporting controls.

The importance of risk assessment includes the strengthening of the internal control, which reduces the opportunity for fraud. Risk assessment identifies the internal control deficiencies and the sensitive areas of the audit.

The risk assessment enables the auditor to find the material misstatements. This enables the auditor to perform the audit in a more efficient and effective manner.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 5, Problem 1DQ

To determine

Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Expert Solution & Answer

Explanation of Solution

Risk assessment refers to the estimation of the possibility of the adverse conditions. It may be considered as the analysis of “What is the worst that can happen”. The risk assessment must be carried on based on the ethical tone of the top management, misstatements, frauds and errors. The major objective of risk assessment is to scrutinize the weakest links in the financial reporting controls.

The importance of risk assessment includes the strengthening of the internal control, which reduces the opportunity for fraud. Risk assessment identifies the internal control deficiencies and the sensitive areas of the audit.

The risk assessment enables the auditor to find the material misstatements. This enables the auditor to perform the audit in a more efficient and effective manner.

Answer 6

Chapter 5, Problem 1DQ

To determine

Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Expert Solution & Answer

Explanation of Solution

Risk assessment refers to the estimation of the possibility of the adverse conditions. It may be considered as the analysis of “What is the worst that can happen”. The risk assessment must be carried on based on the ethical tone of the top management, misstatements, frauds and errors. The major objective of risk assessment is to scrutinize the weakest links in the financial reporting controls.

The importance of risk assessment includes the strengthening of the internal control, which reduces the opportunity for fraud. Risk assessment identifies the internal control deficiencies and the sensitive areas of the audit.

The risk assessment enables the auditor to find the material misstatements. This enables the auditor to perform the audit in a more efficient and effective manner.

Answer 7

Chapter 5, Problem 1DQ

To determine

Identify the objectives of audit risk assessment; its importance in assessing the occurrence of fraud; and the influence of the assessment on evaluation of ICFR.

Answer 8

Expert Solution & Answer

Explanation of Solution

Risk assessment refers to the estimation of the possibility of the adverse conditions. It may be considered as the analysis of “What is the worst that can happen”. The risk assessment must be carried on based on the ethical tone of the top management, misstatements, frauds and errors. The major objective of risk assessment is to scrutinize the weakest links in the financial reporting controls.

The importance of risk assessment includes the strengthening of the internal control, which reduces the opportunity for fraud. Risk assessment identifies the internal control deficiencies and the sensitive areas of the audit.

The risk assessment enables the auditor to find the material misstatements. This enables the auditor to perform the audit in a more efficient and effective manner.