Question
Assessing control risk and audit strategy As an audit manager at Gung & Ho, CPAs, you have been scheduled to serve as the discussion leader
Assessing control risk and audit strategy As an audit manager at Gung & Ho, CPAs, you have been scheduled to serve as the discussion leader for an in-office training session on consideration of the internal control structure in a financial statement audit. Gung & Ho's audit practice consists of audits of privately owned companies and not-for-profit organizations.
Required
Prepare an outline of comments you plan to make to indicate similarities and differences in how each of the following items is handled under a primarily substantive approach versus a reliance on controls approach.
- a. Understand entity-level controls.
- b. Understand the flow of transactions.
- c. Identify what can go wrong (WCGW) for financial statement assertions.
- d. Identify relevant controls to test.
- e. Determine preliminary audit strategy.
- f. Perform tests of controls.
- g. Evaluate audit evidence, assess control risk, and reevaluate audit strategy (if necessary).
- h. Report internal control weaknesses to those charged with governance.
THIS IS ONE QUESTION. PLEASE ANSWER COMPLETELY.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started