What is inherent risk? How can the auditor measure it? What are the implications for the audit
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 54% (11 reviews)
Inherent risk is the susceptibility of transactions to be recorded in error More formally it is defi...View the full answer
Answered By
Moses mwangi
With prior writing experience, be sure that I will give a great grade, If not an A+, it will be something close to this. My reviews speaks it all, Try me!!
4.80+
78+ Reviews
157+ Question Solved
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
Question Posted:
Students also viewed these Auditing questions
-
What is inherent risk in the revenue process? Explain when it would be high for an audit client. Explain when it could be low for an audit client.
-
How can the auditor determine whether the allowance for doubtful accounts is reasonable?
-
How can the auditor test for kiting?
-
The dot-com business has raised many issues about accounting practices, some of which are of great concern to both the SEC and the FASB. Important ones relate to the valuation and classification of...
-
Following data have been obtained for machining AA390 Aluminum, a Si-Al alloy. Compute the K and n values for the Taylor tool life equation. How do these n values compare to the typical values?...
-
Define Managed Care Organizations (MCOs) and Accountable Care Organizations (ACOs) and what are the differences and similarities between them ?
-
Research a past California case in which you believe a removal would have changed the outcome of the case. Using your knowledge of the potential advantages of transferring a case already filed in the...
-
A uniform slender rod of length 2L and mass m rests against a roller at D and is held in the equilibrium position shown by a cord of length a. Knowing that L = 200 mm, determine (a) The angle , (b)...
-
What are the comments and reaction about per given topic discussed: 1. Central Banks and Federal Reserve Banks in the World and their development 2. Brief History of the Bangko Sentral ng Pilipinas...
-
Sofia Lofts case, but under a new set of assumptions on page 11 of the case. First re-read the Sofia Lofts case, then click here to download the new page 11. Specifically, you are to write up a brief...
-
A recent graduate of an accounting program went to work for a large international accounting firm and noted that the firm sets audit risk at 5% for all major engagements. What does a literal...
-
What are the major limitations of the audit risk model? How should those limitations affect the auditor's implementation of the audit risk model?
-
It costs more to produce defective itemssince they must be scrapped or reworkedthan it does to produce non-defective items. This simple fact suggests that manufacturers should ensure the quality of...
-
What will happen to the vibration level of a rotating shaft if there is a mass change at one radial location?
-
What does a field technician need to be aware of when disconnecting the BNC connector on a proximeter of a loaded, running machine?
-
What conditions must be met for stud mounting an accelerometer?
-
Troubleshooting charts are an excellent tool and should be used in what context?
-
What does the unit GSE represent on a demodulated spectrum? Is it relevant to other vibration parameters?
-
In Problems 1-5, perform the indicated matrix operations, if possible, where \[\begin{array}{ll}{[\mathrm{A}]=\left[\begin{array}{rr}1 & 0 \\2 & -1\end{array}ight]} &...
-
Transform the while loop from the previous exercise into an equivalent for loop (make sure it produces the same output).
-
Evelyn and Doug were active in their retirement. They both spent a lot of time working for their community theater group, organizing fund-raisers, building sets, and selling tickets. As full as their...
-
What important items should be documented related to substantive procedures performed for debt obligations and stockholders' equity accounts?
-
Assume your audit client declared a 5% stock dividend. Identify the evidence you would examine to determine whether the stock dividend was accounted for properly.
-
The following long-term debt documentation (indexed K-l), and presented on the next page, was prepared by client personnel and audited by AA, an audit assistant, during the calendar year 2013 audit...
-
a-1.If the required return is 11 percent, what is the profitability index for both projects? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project...
-
3 Neutron Atomic nuclei are made up of protons and neutrons. Protons and neutrons are made up of quarks. In this problem, we will investigate the electric field of a neutron. The neutron consists of...
-
Perform the indicated operation (6x313x24x+5)=(x+1)
Study smarter with the SolutionInn App