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Audit Risk Assessment and Evidence Planning Memo (P 16) At this point in the audit planning, you meet with the senior auditor on the Eagle

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Audit Risk Assessment and Evidence Planning Memo (P 16) At this point in the audit planning, you meet with the senior auditor on the Eagle View engagement, Christine Crawford. She is quite impressed with your interest in planning and has read your earlier memos. She is eager to continue your development of audit judgment and analysis. You will also be assisting with the some of the internal control testing, so, she wants to make sure you have a solid understanding of how to gather sufficient, appropriate evidence. She asks you to prepare a memo (P 16) to address the Acceptable Audit Risk and components of the Audit Risk Module for Eagle View. Ms. Crawford would like you to document: - Your understanding of the reliance on the nancial statements by external users. - Your assessment of the likelihood of financial difficulties for Eagle View after the audit - Your assessment of management's integrity. - A completed Inherent Risk Worksheet (excel file) to accompany your memo. - Your determination of the appropriate level of planned detection risk, and the risk of material misstatement. - Your conclusions about the potential control risks in the Eagle View audit. - An explanation of the impact of your decisions on the audit planning. - You may assume that RL desires a low level of acceptable audit risk. - A brief comment to addless what we mean by sufcient and appropriate evidence; how we evaluate it; and what can affect its reliabity or quality would enhance your memo. - Complete the Audit Risk Worksheet You will use the three-point scale (low, moderate, and high} to evaluate the various components of the audit risk model. Describe what your conclusions would mean for the remainder of the audit in terms of the nature, timing, and extent of details testing

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