Kindness Home (KH) is a not-for-profit organization that operates a nursing home in a town near a
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a. Identify the business risks in KH.
b. Assess the risk of material misstatement at the overall financial statement level. Identify the inherent and control risk factors in the organization to support your assessment.
c. In the audit of the revenues, explain the overall audit approach you would use to obtain sufficient appropriate evidence in this situation. Give clear reasons for the mix of control and substantive work you would plan to do.
Describe the substantive tests you would perform to audit the revenue transactions in this organization. Be specific and show how the tests tie in to the relevant assertions. Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
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