Answer the following questions based on the information presented for Cloud 9 in Appendix A and in 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, complete the following worksheet to determine the overall risk assessment (ORA) and the acceptable detection risk

(DR).

b. For the items identified in part (a), discuss each with respect to risk of misstatement and develop an audit plan to address those risks.

c. Review the Cloud 9 financial statements and identify the areas involving estimates. Develop an audit plan to audit these estimates.

Account Assertion Sales-occurrence Sales completeness Trade receivables- existence Trade receivables- completeness Cash-existence Inherent Risk Control Risk Overall Risk Assessment Detection Risk