EBK AUDITING+ASSURANCE SERVICES
EBK AUDITING+ASSURANCE SERVICES
17th Edition
ISBN: 9780135171219
Author: ARENS
Publisher: PEARSON CO
Question
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Chapter 9, Problem 30DQP

a.

To determine

Identify the types of information that AS2110 suggests the auditor to consider when obtaining an understanding of the company and its environment.

b.

To determine

Identify the types of performance measurement that might affect the risk of material misstatement.

c.

To determine

Explain the specific issues that should be included in the discussion among engagement team members regarding the risk of material misstatement.

d.

To determine

Identify the factor that the auditor should consider in determining the significant risk.

e.

To determine

Explain the guidance that is provided about revising risk assessments.

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Cariveh Co sells automotive supplies from 25 different locations in one country. Each branch has up to 30 staff working there, although most of the accounting systems are designed and implemented from the company's head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequently advising and implementing controls within those systems. Cariveh has an internal audit department of six staff, all of whom have been employed at Cariveh for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor. The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department. You are an audit manager in the internal audit…
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