ACT5743 Required Complete the questionnaire Assume you are the staff auditor and complete the questionnaire Evaluate Risk Assessment for ABC as, low, moderate or high Provide justification for your answer General Risk Management Questionnaire Are there any indications that management may lack integrity Y N Unknown 2 Does management desire favorable earnings because of the following Need to meet forecasts Y N Unknown Need to support price of the entitys stock Y N Unknown Existence of management profit sharing agreements Y N Unknown 3 Does management desire low earnings to reduce income taxes Y N Unknown 4 Is management dominated by one or a few individuals Y N Unknown 5 Does management have a poor reputation in the industry Y N Unknown 6 Does management have a reputation for taking unusual or unnecessary risks Y N Unknown 7 Has there been considerable turnover in senior management positions Y N Unknown 8 Are there other characteristics of management personnel that may affect our risk Y N Unknown If so, list Entity Organization 1 Does the entity lack an audit committee Y N Unknown 2 Does the entity fail to document its accounting system Y N Unknown 3 Does the entity fail to use internal auditors Y N Unknown Do internal auditors, if any, not report to the audit committee or some other high organizational level of the entity Y N Unknown Is the organization owner or manager dominated Y N Unknown Does the entity fail to document job requirements Y N Unknown Does management lack an understanding of accounting and administrative controls Y N Unknown Does management fail to implement accounting and administrative controls Y N Unknown Has management failed to correct material weaknesses in internal accounting control that can be corrected Y N Unknown 10 Are the entitys records generated to a significant degree by an EDP system Y N Unknown 11 Does the entity fail to maintain perpetual records of Inventories Y N Unknown Long lived assets Y N Unknown Investments Y N Unknown 12 If the entity maintains perpetual records, does it periodically compare them with physical counts Y N Unknown 13 Does management fail to communicate to other personnel a commitment to control Y N Unknown 14 Does the entity fail to maintain policy and procedures manuals Y N Unknown 15 Is there a high turnover of accounting and finance personnel Y N Unknown 16Has the client recently changed auditors or attorneys Y N Unknown 17Does a hostile relationship exist between our staff and management Y N Unknown 18Has the client recently organized or acquired a subsidiary Y N Unknown

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ACT5743 Required: Complete the questionnaire. Assume you are the staff auditor and complete the questionnaire. Evaluate Risk Assessment for ABC as, low, moderate or high.

ACT5743

Required:Complete the questionnaire. Assume you are the staff auditor and complete the questionnaire. Evaluate Risk Assessment for ABC as, low, moderate or high. Provide justification for your answer.

General Risk Management Questionnaire

Are there any indications that management may lack integrity? Y N Unknown

2. Does management desire favorable earnings because of the following:

Need to meet forecasts? Y N Unknown
Need to support price of the entitys stock? Y N Unknown
Existence of management profit-sharing agreements? Y N Unknown

3. Does management desire low earnings to reduce income taxes? Y N Unknown

4. Is management dominated by one or a few individuals? Y N Unknown

5. Does management have a poor reputation in the industry? Y N Unknown

6. Does management have a reputation for taking unusual or unnecessary risks? Y N

Unknown

7. Has there been considerable turnover in senior management positions? Y N Unknown

8. Are there other characteristics of management personnel that may affect our risk? Y N Unknown If so, list.

Entity Organization

1. Does the entity lack an audit committee? Y N Unknown

2. Does the entity fail to document its accounting system? Y N Unknown 3. Does the

entity fail to use internal auditors? Y N Unknown

Do internal auditors, if any, not report to the audit committee or some other high organizational level of the entity? Y N Unknown
Is the organization owner- or manager-dominated? Y N Unknown
Does the entity fail to document job requirements? Y N Unknown
Does management lack an understanding of accounting and administrative controls? Y N Unknown
Does management fail to implement accounting and administrative controls? Y N Unknown
Has management failed to correct material weaknesses in internal accounting control that can be corrected? Y N Unknown

10. Are the entitys records generated to a significant degree by an EDP system? Y N Unknown

11 Does the entity fail to maintain perpetual records of:

Inventories? Y N Unknown

Long-lived assets? Y N Unknown

Investments? Y N Unknown

12 If the entity maintains perpetual records, does it periodically compare them with physical counts? Y N Unknown

13 Does management fail to communicate to other personnel a commitment to control? Y N Unknown

14 Does the entity fail to maintain policy and procedures manuals? Y N Unknown

15 Is there a high turnover of accounting and finance personnel? Y N Unknown

16Has the client recently changed auditors or attorneys? Y N Unknown

17Does a hostile relationship exist between our staff and management? Y N Unknown

18Has the client recently organized or acquired a subsidiary? Y N Unknown