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part b is incorrect, message says the first 3 are incorrect. please help me!! Mark Hopper is planning the audit of the investments account for
part b is incorrect, message says the first 3 are incorrect. please help me!!
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. (Click the icon to view the Mark's risk assessment for the investment account.) Read the requirements. Requirement a. Describe each of the four identified risks in the columns of the table given. Match each identified risk with its definition. Type of risk Control risk Definition A measure of the auditor's assessment of the risk that a material misstatement could occur in an assertion and not be prevented or detected and corrected by the client's internal controls. This risk is related to the effectiveness of a client's internal controls. A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unmodified opinion has been issued. This is the risk that the auditor will give an incorrect audit opinion. A measure of the risk that audit evidence for an audit objective will fail to detect misstatements exceeding performance materiality, should such misstatements exist. In audit planning, this risk is determined by using the other three factors in the risk model. A measure of the auditor's assessment of the susceptibility of an assertion to material misstatement before considering the effectiveness of internal control. This risk relates to the auditor's expectation of misstatements in the financial statements, ignoring internal control. Acceptable audit risk Planned detection risk Inherent risk Requirement b. Fill in the blank for planned detection risk for each balance-related audit objective using the terms low, medium, or high. 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. (Click the icon to view the Mark's risk assessment for the investment account.) Read the requirements. ... CAJU VI LIIC HON LilaL auuil CVIUCIILE IUI an auuiL UWJCULIVE VIAN LU UCLCUL Planned detection risk misstatements exceeding performance materiality, should such misstatements exist. In audit planning, this risk is determined by using the other three factors in the risk model. A measure of the auditor's assessment of the susceptibility of an assertion to material misstatement before considering the effectiveness of internal control. This risk relates to the auditor's expectation of misstatements in the financial statements, ignoring internal control. Inherent risk d Requirement b. Fill in the blank for planned detection risk for each balance-related audit objective using the terms low, medium, or high. Risk of Material Misstatements Balance-Related Audit Objectives Acceptable Audit Risk Planned Detection Risk Inherent Risk Control Risk Existence Low Medium Medium Medium Medium Low Medium Completeness High Medium Medium Medium Low Accuracy Cutoff Medium Medium Low Medium Medium Medium Low Medium Detail tie-in Low Low Medium Realizable value High Medium Classification Low Low High bje Low Medium Medium Medium Rights and obligations Medium Low Medium Presentation Medium ple related audit objectives in the investment account. e Mark's risk assessment for the investment account.) IUCI on oi & One or more of your responses is incorrect. blank high The planned detection risk for existence, completeness, and/or accuracy are incorrect. Recall the definition of planned detection risk. How does it affect each balance-related audit objective? Try your answers again. Ad A OK Medium Medium Low Medium Medium Medium Low Medium Low High Medium Low Medium Low Low High
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