Jason is a sole practitioner operating out of his local office. He is part of a...
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Jason is a sole practitioner operating out of his local office. He is part of a regional group of firms and occasionally does small audits with the assistance of one staff person. Using automated working paper software, he runs a standard set of analytical review calculations for each audit, then puts them in the working paper file. He does not look at the analytical review process again. Since most of the audit clients have no internal controls, he then calculates materiality and conducts a substantive audit. He prefers to do more substantive testing rather than having to do all kinds of work with internal controls. Required: Identify and explain four problems with Jason's audit approach. Jason is a sole practitioner operating out of his local office. He is part of a regional group of firms and occasionally does small audits with the assistance of one staff person. Using automated working paper software, he runs a standard set of analytical review calculations for each audit, then puts them in the working paper file. He does not look at the analytical review process again. Since most of the audit clients have no internal controls, he then calculates materiality and conducts a substantive audit. He prefers to do more substantive testing rather than having to do all kinds of work with internal controls. Required: Identify and explain four problems with Jason's audit approach.
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Jasons audit approach raises several concerns that could impact the effectiveness and quality of his audits Here are four problems with his approach L... View the full answer
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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