a. Malc trol risk was increased after tests of contro This audit is likely for a public company, and is also the most efficiell (1) Extensive relianc l (3) This company has ineffective controls, and may also have fraud risks present. b. What other factors likely explain the different approaches to the audit of acquisitions (2) and payments and accounts payable for these three engagements? c. What could Angela's supervisors have done to improve her understanding of the au- dit strategy for each engagement? 13-32 (OBjECTIVES 13-4, 13-6, 13-7) The following are parts of a typical audit for a company with a fiscal year-end of July 31. 1. Understand internal control and assess control risk. 2. Perform substantive analytical procedures for accounts payable. 3. Confirm accounts payable. Perform tests of controls and substantive tests of transactions for the acquisition and payment and payroll and personnel cycles 5. Perform other tests of details of balances for accounts payable. 6. Perform tests for review of subsequent events. 7. Accept the client. 8. Issue the audit report. 9. Set acceptable audit risk and decide preliminary judgment about materiality and per- formance materiality a. Identify the phase of the audit in which each activity occurs. b. Put parts 1 through 9 of the audit in the sequential order in which you would expect Req them to be performed in a typical audit. c. Identify those parts that will frequently be done before July 3 1 3ES . uditors develon overall audit plans to ensure that they obtain