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5-15) How do the resources if risk of misstatement in Exhibit 5.6 help the auditor plan the audit? 5-25) An important principle of the control
5-15) How do the resources if risk of misstatement in Exhibit 5.6 help the auditor plan the audit?
5-25) An important principle of the control environment is the organization's commitment to ethics and integrity (COSO Principle 1). How might an auditor test the operating effectiveness of a clients commitment to ethics and integrity?
Please post original answer not somone else post.Thanks
Exhibit 5.6 Examples of sources of Risk of Material Misstatement Economic and competitive changes Changes in fair market values of assets/iabilities Regulatory risks and changes BUSINESS RISK Compensation/reward structure for all levels Stock market performance and debt covenants Short-term actions to enhance current performance MANAGEMENT MOTIVATIONS Transaction processing of high volumes of material transactions . IT risks and vulnerabilities Processes affecting major estimates and adjusting entries PROCESSES AFFECTING MATERIAL ACCOUNT BALANCES Assessment of Risk of Material MisstatementStep by Step Solution
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