this is an auditing assignment for monday

6-7 What is the auditor's responsibility when noncompliance with laws or regulations is identified or suspected? 6-8 What are the six elements of professional skepticism? Describe two of those six elements. IL Chapter 8 Questions (10 points) B-1 What are the benefits derived from planning audits ? 8-2 What are the responsibilities of the successor and predecessor auditors when a company is changing auditors? B-3 What is the purpose of an engagement letter? What subjects should be covered in such a letter? 8-4 Who is considered the client when auditing public companies? 8-5 Explain why auditors need an understanding of the client's industry. What information sources are commonly used by auditors to learn about the client's industry? 8-6 Define what is meant by a related party. What are the auditor's responsibilities for related parties and related party transactions? 1 8.7 Identify the three categories of client objectives. Indicate how each objective may affect the auditor's assessment of risk of material misstatement and need for evidence accumulation 8-8 Define the meaning of the term materiality as it is used in accounting and auditing. What is the relationship between materiality and the phrase obtain reasonable assurance used in the auditor's report? II. Critical Thinking and Writing Skills (50 points) A. In February, your new work assignment is the audit of Miramar Company's financial statement of 12/31/2021. The Manager in Charge gives the following audit assignment: Prepare a summary that describes the best practice in accounting system related to accounts receivable The summary is going to use in the audit of Miramar Company. (20 points) B. In considering materiality for planning purposes, an auditor believes that misstatements aggregating $10,000 will have a material effect on an entity's income statement, but that misstatements will have to aggregate $20,000 to materially affect the balance sheet. Ordinarily it is appropriate to design audit procedures that are expected to detect misstatements that aggregate (1) $20,000 (2) $15,000 (3) $10,000 (4) $30,000 Choose the best response and the prepare a summary that support your selection (20 points) C. Which of the following would not have a direct impact in determining the sufficiency of evidence gathered during an audit? (1) The cost-benefit relationship of obtaining the audit evidence (2) The quality of audit evidence obtained (3) The auditor's professional judgment (4) The risk of material misstatemen Choose the best response and the prepare a summary that support your selection (10 points)