Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Remaining Time: 3 hours, 01 minute, 26 seconds. Question Completion Status: QUESTION 2 2 points Save Answer Each multiple choice is worth two (2) marks

image text in transcribed

Remaining Time: 3 hours, 01 minute, 26 seconds. Question Completion Status: QUESTION 2 2 points Save Answer Each multiple choice is worth two (2) marks with one mark for the correct answer and one mark for the explanation for your answer. Explanations must include Auditing standard references to get full marks. You are conducting the audit of ABC Ltd which operates a large retail chain across Australia. In your discussions with management, you identify that they have had a lot of transport issues this year which has meant that they could not get as much stock as they normally would delivered and that their stock has often been held up on trucks and ships. Which of the following is true in relation to the audit. a) The overall audit risk would need to increase due to the danger that stock is incorrectly counted and recorded at year end. b) Control risk will increase which will mean that detection risk will need to decrease in the audit. c) The level of materiality will need to increase because there is more change of errors. d) A more substantive audit strategy on the stock would be required due to a lower detection risk approach required. For the toolbar press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I y Paragraph 14px 1 T Anal A . Help TT - % 9 a es {:) +

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Financial Accounting Chapters 1 To 18

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

12th Edition

9781118978740

More Books

Students also viewed these Accounting questions

Question

pls help understand and doing the excel

Answered: 1 week ago