Question
Mark Hopper is planning the audit of the investments account for audit client Garden Supply Co. (GSC). GSC invests excess cash at the end of
Mark Hopper is planning the audit of the investments account for audit client Garden Supply Co. (GSC). GSC invests excess cash at the end of the summer sales season through an investment manager who invests in equity and debt securities for GSC's account. Hopper has assessed the following risks as low, medium, or high for the relevant balance-related audit objectives in the investment account.
Requirement b. Fill in the blank for planned detection risk for each balance-related audit objective using the terms low, medium, or
high. One answer for each
| Risk of Material Misstatements |
| ||
---|---|---|---|---|
Balance-Related Audit Objectives | Acceptable Audit Risk | Inherent Risk | Control Risk | Planned Detection Risk |
Existence | Low | Medium | Medium |
|
Completeness | Medium | Low | Medium |
|
Accuracy | Medium | Medium | Medium |
|
Cutoff | Medium | Medium | Low |
|
Detail tie-in | Medium | Medium | Low |
|
Realizable value | Low | High | Medium |
|
Classification | Medium | Low | Low |
|
Rights and obligations | Medium | Medium | Low |
|
Presentation | Medium | Low | Medium |
|
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