Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
Auditing & Assurance Services: A Systematic Approach (Irwin Accounting)
10th Edition
ISBN: 9780077732509
Author: William F Messier Jr, Steven M. Glover Associate Professor, Douglas F. Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Chapter 5, Problem 5.39P

a.

To determine

Introduction: Potential risk refers to the risk which is directly associated to the possible course of action, in different business conditions.

To indicate:Potential risks are associated with historical data

b.

To determine

Introduction: Historical patterns refers to the past records in accountancy which continue to remain same over the period of time.

To indicate: Difference between historical patterns of company from that of industry.

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