Question: Answer the following questions based on the information presented for Cloud 9 in Appendix B of this book and in the current and earlier chapters.

Answer the following questions based on the information presented for Cloud 9 in Appendix B of this book and in the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters.
The worksheet you completed for the case study question in chapter 9 includes your estimates of the overall risk assessment (ORA) and the acceptable detection risk (DR) in the sales to cash receipts process.
Required
Based on your ORA and DR estimates, design substantive audit procedures for Cloud 9 that would address the DR for the following accounts: (1) accounts receivables (do not include the allowance for doubtful accounts) and (2) cash.

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1 Complete the table to determine the Combined Risk Assessment and acceptable Detection Risk Account Assertion IR CR ORA DR Sales Occurrence High Medium Higher Lower Sales Completeness Low Low Lowest ... View full answer

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