Explain why inherent risk is estimated for specifi c accounts rather than for the overall audit. What

Question:

Explain why inherent risk is estimated for specifi c accounts rather than for the overall audit. What is the effect on the amount of evidence the auditor must accumulate when inherent risk is increased from medium to high for a segment?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Auditing The Art and Science of Assurance Engagements

ISBN: 978-0133405507

13th Canadian edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

See More Books

Question Posted: Dec 22, 2016 09:47 AM

See More Questions

Explain why inherent risk is estimated for segments rather than for the overall audit. What is the effect on the amount of evidence the auditor must accumulate when inherent risk is increased from...
Explain why inherent risk is set for segments rather than for the overall audit. What is the effect on the amount of evidence the auditor must accumulate when inherent risk is increased from medium...
Explain why inherent risk is set for audit objects for segments (classes of transaction, balances, and presentation and disclosure) rather than for the overall audit. What is the effect on the amount...
The Policy Committee of your company decides to change investment strategies. This change entails an increase in exposure to the stocks of large companies producing consumer products dominated by...
What is the general formula for determining the minimum transfer price that the selling division should be willing to accept?
a. Suppose the marginal social cost of television sets is $100. This is constant and equal to the average cost of television sets. The annual demand for television sets is given by the following...
Consider the Gallo strategic decision. Describe how you would go about evaluating that decision.
Premier Consultings two consultants, Avery and Baker, can be scheduled to work for clients up to a maximum of 160 hours each over the next four weeks. A third consultant, Campbell, has some...
-. Use the Average Annual Costs of Owning and Operating a Car table below. If you drive 40,000 miles per year, what is the total annual expense for an electric car? (2 points) Average Annual Costs of...
Lets return to the model of financial aid awards at a liberal arts college that was first introduced in Section 2.2. In that section, we estimated the following equation (standard errors in...
How does engagement risk affect the audit process?
Explain the relationship between audit risk and the legal liability of auditors.
Determine the effects of the following on a cash basis taxpayer's gross income for 2016 and 2017. a. On the morning of December 31, 2016, the taxpayer received a $1,500 check from a customer. The...
A uniformly charged insulating sphere is in a vacuum. Its radius R is 3 0 3 0 mm . . The permittivity of the material of the sphere is the same as that of vacuum. When the zero point of potential is...
A 1.0 kg object slides down a frictionless ramp onto a horizontal frictionless surface and into a horizontal spring for which K = 100 N/m. The object starts down the ramp with a speed of 2.0 m/s. The...
An adventurous dog strays from home, runs three blocks east, two blocks north, one block east, one block north, and two blocks west. Assuming that each block is about 1 0 0 m , how far from home and...
A 5 0 kg student in a 1 0 kg boat is trying to rescue me with a rope. I am a 1 0 0 kg professor in a 2 0 kg boat. Thestudent tosses me a rope, and I grab hold of the end. I hold my end tight, while...
Rewrite each of the following measurements using the rounding rules listed in the Lab Standards Manual in the box below each measurement. Use Insert Equation to format the equation and the sign...
Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for a recent year. For the year, net sales were $8,258 and cost of...
Compile data on consumption and expenditures for the following categories in 30 different countries: (1) food and beverages, (2) clothing and footwear, (3) housing and home operations, (4) household...
Distinguish among a payroll master file, a TD-1 form, and a T4 payroll summary return. Explain the purpose of each.
What is the purpose of testing both employee access rights setup and employee access rights changes? What would be the impact upon the audit if either or both of these processes had control...
What is the importance of cash discounts to the client, and how can the auditor verify whether they are being used in accordance with company policy?
Suppose that (an) satisfies an #0 Vn N and lim =r <1. an Prove that Clan converges and in particular an converges. (a) Show that there exists kEN such that for all nk we have lan+1 Sans where s= (b)...
Stephens, Inc currently pays a $3 per share dividend, but is considering eliminating the dividend and using the savings to repurchase shares. Investments of similar risk to Stephens provide an...
The Fellsway Bank is considering placing ATM machines in the town centers of some of the following six communities: Arlington, Belmont, Cambridge, Winchester, Stoneham, and Melrose. The bank would...

Explain why inherent risk is estimated for specifi c accounts rather than for the overall audit. What

Question:

Step by Step Answer:

Inherent risk is set for segments rather than for the over...View the full answer

Auditing The Art and Science of Assurance Engagements

Students also viewed these Auditing questions