1. Plan the audit 2. Obtain Understanding of Client, its Environment, and Internal Control -Include materiality (rule...

Question:

1. Plan the audit
2. Obtain Understanding of Client, its Environment, and Internal Control -Include materiality (rule of thumb) and sample size (non statistical) (# of transactions = 12,000 value of transactions = $4,500,000 Trial balance = 300,000) 1% of 4,500,000 = 45,000 (materiality) 4,500,000*1.6(moderate risk) / 45,000 = 160 (sample size) -Mention stratification
3. Assess Risks of Material Misstatement and Design Further Audit Procedures
4. Perform Further Audit Procedures
5. Complete the Audit
6. Form an Opinion and Issue the Audit Report
The audit report is issued by a certified public accountant who is appointed by the shareholders to provide assurance upon the truth and fairness of the financial statements prepared by the managers of the company. Audit report contains the...