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I need to answer A, B and C this case study part a continuation of what you help me with over the weekend. accounts receivable

I need to answer A, B and C this case study part a continuation of what you help me with over the weekend. image text in transcribed
accounts receivable balance. You investigate this recerivable and learn th 6. During a mectirg wa signitica a mecting with the facilities director, you learn that the board nt amount of debt to finance the ew manufacturing plant for the Solar-Electro division. The co e make a considerable investment in modifications to the propty has decided to raise a to the property on whi e plant will be built Vhile standing in line at a vending machine, you see a Pinnacle vice You are fam Company and noticed some of its repairmen working in the plantl the man you like the shirt and he responds by saying, "Thank youMe,Yo own the company, but we hire people to manage it. 8. After inquiry of the internal audit team, you realize there is internal audit department. You conclude the turnover is 9. While reviewing Pinnacle's long-term debt agreements, you identify severa 10. The engagement partner from your CPA firm called today notifying you th will be coming on-site to Pinnacle's facilities to investigate an ongoing II. A member of your CPA firm, who is currently on-site in Detroit at the W higher-level positions Causin The size Jrme had gan tive covenants. Two requirements are to keep the current ratio above 20andels e20Rogue 2.0 and de and de to-equity below 1.0 at all times Sioux, an industry specialist and senior tax manager from the firm's Ontari l between the Internal Revenue Service and Pinnacle dispe division, calls you to see how everything is going while you are vsting Sa Kervie in Texas. During your conversation, he asks if you know anything about the compuny losn foo weba yhabout the oppo intercompany Joan from Welburn to Solar-Electro, a. Review Part I of the case and the situations in Part II and identify inform Required of nd identify information th uat affects your assessment of acceptable audit risk. Note that only some of the si in Part I will relate to acceptable audit risk. Classify the information based mor dire bet se in three factors that affect acceptable audit risk. External users' reliance on financial statements Likelihood of financial difficulties Management integrity b. Assess acceptable audit risk as high, medium, or low considering the items yoo identified in requirement a. (A risky client will be assessed as a low acceptable aude risk.) Justify your response c. Identify inherent risks for the audit of Pinnacle using the information from Parts and II. For each inherent risk, identify the account or accounts and the relevant aud objectives that may be affected. Inherent Risk Account or Accounts Affected Relevant Audit Objectives RESEARCH PROBLEM 9-1 MATERIALITY AND PERFORMANCE MATERIALITY

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