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REQUIRED 61) b) Critique Shelly's analysis in the client acceptance working paper. In your analysis, consider those factors which she analyzed as well as any

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REQUIRED 61) b) Critique Shelly's analysis in the client acceptance working paper. In your analysis, consider those factors which she analyzed as well as any missing factors that are required by the Canadian Auditing Standards. NOTE: In your discussion, ensure to explain why or why not each factor Shelly analyzed was appropriate and whether Shelly's conclusion was appropriate. For any missing factors, provide an analysis of the issue and explain its impact on the client acceptance analysis. (8 marks) Do you agree or disagree with the benchmark selected and the percentage applied to establish overall materiality? Provide a rationale as to why or why not and recalculate a revised materiality if required.(5 marks) Do you agree or disagree with the percentage selected for performance materiality? Provide a rationale as to why or why not (include in your discussion the impact on the audit) and recalculate a revised performance materiality if required. (4 marks) Refer to Shelly's risk assessment of entity level controls in the audit strategy memo. Identity 2 control weaknesses, explain the implication of the weakness for RxBar (what can go wrong), and provide a recommendation to address that control weakness. {6 marks) In Shelly's risk assessment of entity level controls, she concluded that the controls over credit policy were effective, do you agree with this conclusion? Why or why not? Do you think she had sufficient and appropriate evidence to make this conclusion? Why or why not? (4 marks) Refer back to the description of the analytical review performed in the audit strategy memo. For the analytical review procedures identifythe relevant assertion(s), and based on the case facts, indicate whether the misstatement would be an overstatement or understatement and explain the impact on the audit and what additional testing should be done. (6 marks)

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