Apart from the Inventory account, which other accounts and assertions are at risk of material misstatement for DD, and why?

What impact does the control risk assessment have on inherent risk and detection risk?

What is the auditor's preliminary assessment of control risk and why?

What impact does the control risk assessment (from the previous question) have on inherent risk and detection risk?

Which assertion is at risk for the inventory account?

Select one:

a. rights & obligations

b. accuracy, valuation and allocation

c. existence

d. completeness

What was most likely to bring the unexpected growth in reported revenues to the auditor's attention?

Select one:

a. preliminary enquiries of management

b. researching the client's industry

c. the preliminary analytical review

d. touring the client's facilities

You have completed a financial report audit and the following material event occurred: A large order from an overseas supplier was shipped FOB (free on board) from its port of origin on 1 June 2020. The order arrived on 20 July 2020. The purchase is not reflected in the 30 June 2020 financial report and management have refused to amend it.

What audit opinion would you issue, and why? (2.5 marks)