I need Q3 done
Audit Risk Assessment Meme Ad Year December 31, 20 Performed by SOM Reviewed by Date: 1/19/20 Fraud Brainstorming To comply with PCAOS ASC 2110 and Assessings of Material Matement, the firm requires all encacement team personnel to be involved in a brainstorming session during which team members changed about how and where the client's financial statements may be susceptible to material misstatement de to fraud Documentation As required, Tryg Johnson and conducted a fraud brainstorming session on February 6, 3X3 Overall we find the client to be highly ethical Owner Alexis Madison has the highest integrity and has strong ties to the community Tryg and i concluded that there was ttle or no risk of material statement due to fraud at Alpine and no accounts for which fraud was a concem Simon Malik Toy Johnson Understanding of Client's Environment including internal Controls We reviewed the client's background information retained in our PERM FILE work papers to understand the company and its inherent risk. We will also perform an understanding of internal control over the client's processes prior to our test of control procedures (see audit program Through performing preliminary analytical procedures, we also assessed any significant changes within the company's accounts and activities (see WP B.3.1 through B.3.3.) Per discussion with Alexis Madison, there are no significant changes within the company beyond the consideration of issuing debt SDM Account Balances and Transaction Risk Assessment: Per our review of the account balances and transactions, we have assessed a higher level for the risk of material misstatement in the following accounts: Inventory (due to inventory price fluctuations) Revenue (potential fictitious sales could lead to overstated revenues) Accounts Receivable (potential fictitious sales transactions could lead to AR overstatement) We believe that there is a higher likelihood for material misstatements in these accounts SDM Overall Risk Assessment Summary: Based on our preliminary analytical procedures, and knowledge of the client, we assess inherent risk as high a control risk as moderate, making detection risk high. Simon Malik are and Foster Audit Workpaper 821 Alpine Cupcakes in A December During our evaluation of valmistatement we will compare the total of mines on the Garcia and Fostets Reviewed by Performed by: SOM Date: 2/1/20 Date: Materiality Methodology Planning material is determined as follows break even, in which case we base materiality on 1 of totale 12) For private clients, we base materiality on 1 of prior year's equity Tolerable misstatement (TM) is set at Son of PM Summary of audit differences (SAD) threshold is set at of PM We will place any identified misstatements greater than our SAD threshold onto the SAD listing Our PM threshold Date Application of Methodology to Alpine Audit for 20x21 Box Total Equity for Alpine Cupcakes, Inc.: 5745,409 (1.1) Materialty thresholds for the Box audit: Under We pro PM 0.01 1761,409 37.414 37.400 TM - 50 * 37.400 = $1,700 SAD 0.05*37400 - 3370 Acce Determine inherent Risk, Control Risk, and Detection Risk: During the planning of the audit, including understanding the client and its environment and understanding internal control environment, we must determine the level of inherent risk (IR), control risk (CR) and detection (DR) Application of IR, CR, and DR for 20x2 Alpine Audit: Our preliminary risk assessment levels are set as follows: Ac Low Audit Rik Inherent risk Control Detection risk - High Moderate - High We have set our risk assessment levels for the overall audit in order to reduce our audit risk to the appropriate level. Garcia and Foster Audit Workpaper B21 11 44 d. Preliminary analytical procedures. Q2. Evaluate Garcia and Foster's documentation of their understanding of the client's environment (workpaper B.2.1.) Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan. Q3. Review Garcia and Foster's calculations of materiality thresholds for the 20x2 Audit (workpaper B.2.1). Determine if the auditors correctly applied the materiality concept in their risk assessment procedures. Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan. nacts the Audit Risk Assessment memo (workpaper B.2.1.) In particular, review the Audit Risk Assessment Meme Ad Year December 31, 20 Performed by SOM Reviewed by Date: 1/19/20 Fraud Brainstorming To comply with PCAOS ASC 2110 and Assessings of Material Matement, the firm requires all encacement team personnel to be involved in a brainstorming session during which team members changed about how and where the client's financial statements may be susceptible to material misstatement de to fraud Documentation As required, Tryg Johnson and conducted a fraud brainstorming session on February 6, 3X3 Overall we find the client to be highly ethical Owner Alexis Madison has the highest integrity and has strong ties to the community Tryg and i concluded that there was ttle or no risk of material statement due to fraud at Alpine and no accounts for which fraud was a concem Simon Malik Toy Johnson Understanding of Client's Environment including internal Controls We reviewed the client's background information retained in our PERM FILE work papers to understand the company and its inherent risk. We will also perform an understanding of internal control over the client's processes prior to our test of control procedures (see audit program Through performing preliminary analytical procedures, we also assessed any significant changes within the company's accounts and activities (see WP B.3.1 through B.3.3.) Per discussion with Alexis Madison, there are no significant changes within the company beyond the consideration of issuing debt SDM Account Balances and Transaction Risk Assessment: Per our review of the account balances and transactions, we have assessed a higher level for the risk of material misstatement in the following accounts: Inventory (due to inventory price fluctuations) Revenue (potential fictitious sales could lead to overstated revenues) Accounts Receivable (potential fictitious sales transactions could lead to AR overstatement) We believe that there is a higher likelihood for material misstatements in these accounts SDM Overall Risk Assessment Summary: Based on our preliminary analytical procedures, and knowledge of the client, we assess inherent risk as high a control risk as moderate, making detection risk high. Simon Malik are and Foster Audit Workpaper 821 Alpine Cupcakes in A December During our evaluation of valmistatement we will compare the total of mines on the Garcia and Fostets Reviewed by Performed by: SOM Date: 2/1/20 Date: Materiality Methodology Planning material is determined as follows break even, in which case we base materiality on 1 of totale 12) For private clients, we base materiality on 1 of prior year's equity Tolerable misstatement (TM) is set at Son of PM Summary of audit differences (SAD) threshold is set at of PM We will place any identified misstatements greater than our SAD threshold onto the SAD listing Our PM threshold Date Application of Methodology to Alpine Audit for 20x21 Box Total Equity for Alpine Cupcakes, Inc.: 5745,409 (1.1) Materialty thresholds for the Box audit: Under We pro PM 0.01 1761,409 37.414 37.400 TM - 50 * 37.400 = $1,700 SAD 0.05*37400 - 3370 Acce Determine inherent Risk, Control Risk, and Detection Risk: During the planning of the audit, including understanding the client and its environment and understanding internal control environment, we must determine the level of inherent risk (IR), control risk (CR) and detection (DR) Application of IR, CR, and DR for 20x2 Alpine Audit: Our preliminary risk assessment levels are set as follows: Ac Low Audit Rik Inherent risk Control Detection risk - High Moderate - High We have set our risk assessment levels for the overall audit in order to reduce our audit risk to the appropriate level. Garcia and Foster Audit Workpaper B21 11 44 d. Preliminary analytical procedures. Q2. Evaluate Garcia and Foster's documentation of their understanding of the client's environment (workpaper B.2.1.) Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan. Q3. Review Garcia and Foster's calculations of materiality thresholds for the 20x2 Audit (workpaper B.2.1). Determine if the auditors correctly applied the materiality concept in their risk assessment procedures. Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan. nacts the Audit Risk Assessment memo (workpaper B.2.1.) In particular, review the
