Question: Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You

Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case study questions in earlier chapters.

Required

(a) Based on your conclusions from the case study questions in previous chapters (particularly chapters 4, 8 and 9), complete the worksheet following to determine the overall risk assessment and the acceptable detection risk.

(b) Based on your overall risk assessment and detection risk estimates, design substantive audit procedures for Cloud 9 Pty Ltd that would address the detection risk for the accounts: trade receivables (do not include the allowance for doubtful debts) and cash. When determining testing thresholds for your detail procedures, consider using a percentage of planning materiality that best reflects the relationship to the detection risk; that is if detection risk is high, the percentage of planning materiality should be high. Account assertion Trade receivables - existence Trade receivables - completeness Cash - existence Cash

Account assertion Trade receivables - existence Trade receivables - completeness Cash - existence Cash completeness Inherent risk Control risk Overall risk assessment Detection risk

Step by Step Solution

★★★★★

3.33 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Overall risk assessment and acceptable detection risk Based on my conclusions from the case study questions in previous chaptersI would assess the overall risk for Cloud 9 Pty Ltd as highThis is due ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Auditing A Practical Approach Questions!

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...

Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider your answers to the case...

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...

please do all parts! Part 1: Gain an Understanding of the Client W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk assessment phase for the new audit, the audit team...

Cloud 9 - Continuing Case Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also consider...

CASE BELOW: Cloud 9 - Continuing Case Answer the following questions based on the information presented for Cloud 9 in the appendix to this text and the current and earlier chapters. You should also...

Cloud 9 - Continuing Case Part 1: Gain an Understanding of the Client W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk assessment phase for the new audit, the audit...

Part 1: Gain an Understanding of the Client W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk assessment phase for the new audit, the audit team needs to gain an...

W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk assessment phase for the new audit, the audit team needs to gain an understanding of Cloud 9's structure and its...

ZOOM IN IF FONT TOO SMALL Cloud 9 - Continuing Case Part 1: Gain an Understanding of the Client W&S Partners began the planning phase of the Cloud 9 audit. As part of the risk assessment phase for...

Greene Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2013. 1. Sales: Quarter 1,...

Consider the following system. K(s +2) s(s 1)(s + 3) G(s) - a) Determine the characteristic equation. b) Show the Routh table for this system. c) For what value of K this system is stable?

Methods to conduct international business STEP: 2 of 2 Firms use a variety of methods to conduct business internationally. Consider the case of an MNC conducting international business via the use of...

1. Operations scheduling is concerned with establishing _________ within a firm. (a) Timing (c) Both (a) & (b) (b) Use of resources (d) None of the above

As part of your intern training at a large public accounting firm, you have been asked to conduct research about audit procedures related to client noncompliance with laws and regulations. You will...

Analysis: Using BPH?s financial data, perform analytical procedures to gain an understanding of BPH. Conduct a trend analysis, common-size analysis, and ratio analysis. Based on your analysis,...

When gaining an understanding of the client at the industry level, the auditor will: a. Consider the level of demand for the goods provided by companies in the industry. b. Determine if the client...

For some types of meeting there are legal and ethical requirements that must be complied with. How can you identify these requirements and to what types of meeting will they apply? Conduct...

DevelopSystems. Apply full systems integration to identify and respond to future Zara opportunities.Thiscan increase productivity, promote better management and efficient data collection and...

What is an Action Programs and How to make in making a Marketing plan?Can I ask for an outline and steps.