Question: Explain how ratio analysis and industry comparisons can be useful
Explain how ratio analysis and industry comparisons can be useful to the auditor in identifying potential risk of material misstatement on an audit engagement. How can such analysis also help the auditor plan the audit?
Answer to relevant QuestionsBrainstorming is a group discussion designed to encourage auditors to creatively assess client risks, particularly those relevant to fraud.a. When does brainstorming typically occur?b. Who attends the brainstorming session? ...How can an auditor introduce unpredictability into audit procedures?Locate and read the article listed below and answer the following questions.Johnstone, K. 2000. Client-Acceptance Decisions: Simultaneous Effects of Client Business Risk, Audit Risk, Auditor Business Risk, and Risk ...MULTIPLE-CHOICE QUESTIONS1. For which of the following auditing procedures would sampling be most appropriate?a. Examining documents.b. Inquiring of management.c. Observing controls being completed.d. Conducting analytical ...Using the tables in Exhibit, work backward to explain at least one set of assumptions that the auditor would have to make to justify the following samplesizes:
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