It is your first day in auditing class, and your instructor has explained how grades are going to be earned and recorded. Attendance (worth 5 percent) is going to be tracked with sign-in sheets, while discussion marks (again up to 5 per¬ cent) can be earned by means of several options: taking up a text book question, bringing in a current article or video for discussion, or talking about a change in auditing standards. 1 here are also a group term paper with a presentation, a midterm examination, and a final examination. The instructor will record grades in spreadsheets and post preliminary results (with truncated student numbers). Then you are asked some questions about your grades that you were never asked before. The purpose of these questions is to help you integrate the current class materials and to think about auditing in the context of something that is important to you.

REQUIRED

a. Who are the stakeholders who would be concerned if your grades are wrong?

b. Which grades are at the most risk of being incorrect, and which stakeholders would be most affected by errors in those grades? Answering this question is part of a risk assessment process.

c. What could you or the instructor do to prevent errors in the grades? This step is known as risk response or risk mitigation.

d. What steps would you take to audit your grades? What types of audit engagement do these steps belong to?