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please help with these 3. Please consider the five steps of the KPMG Judgment Framework (these steps are outlined in the questions and do not
please help with these
3. Please consider the five steps of the KPMG Judgment Framework (these steps are outlined in the questions and do not need to be looked up) For each step, think- carefuly about what the auditors could have done to help detect the fraudulent activity related to the warranty reserve account at Hamilton Company. Please use the following questions to guide your critical thinking about this case: a. Clarify the issues and the objectives related to auditing the warranty reserve account at Hamilton. To do so, please ask yourself what specific problem needs to be solved by the auditor? What assumptions would have the biggest impact on the overall judgment to be made? how does this judgment relate to the overall audit process? b. Consider the various aiternatives that should be thought about when auditing the warranty reserve account at Hameton. To do so, please ask yourself about each of the alternatives that are reasonably nossible, even when they might contradict the client's point of view. Are there amy external factors that thould be considered? c. Consider the type of intormation and evidence that should be gathered when completing the audit of the internal control activities reiated to the Warranty reserve account at Hamiton. To do so, please ask yourself about the type of information that would be helpful to determine whether the internal control activities were operating eflectively. How can vou be sure that the information gathered is reliable? In addition, how can you be sure that the evidence is appropriate in this situation? Finally. What evidence could be gathered that might reveal that the internal controls were NoT operating effectively? d. Conskier the factors that would hove to be thought about when reaching a final conclusion about the warranty account at Hamiton. Although you do not have access to the actual evidence, what "big nicture" issues would have to be thought about before reaching a final conclusion? Finaly, what could possibly go wrong in this situation? e. Consider the importance of documenting the rationale for your final conclusion. Why do you think it is important to document your rationale when firializing your judgment? In addition, describe what is expected to be documented to support an auditor's protessional judgment Step by Step Solution
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