Here is how KPMG described developing its audit strategy. Identification of Significant Risks We design an overall

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Here is how KPMG described developing its audit strategy. Identification of Significant Risks

We design an overall audit strategy and an audit approach to address the significant financial reporting risks that by their nature require special audit consideration. By focusing on these risks, we establish an overall audit strategy and effectively target our audit procedures.

KPMG identified 12 significant reporting risks. In the table below, we compare KPMG's audit approaches for two different accounts which both have a low risk of material misstatement prior to the consideration of internal controls (or inherent risk):

Here is how KPMG described developing its audit strategy. Identification

1. Development charges are charges to developers for water, wastewater, and roads that the region provides to new residential and industrial developments.
2. Based upon what you have learned about audit strategy so far, why would KPMG apply a different strategy to two accounts that have the same risk of material misstatement?

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Auditing The Art and Science of Assurance Engagements

ISBN: 978-0133405507

13th Canadian edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

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