a) Assume auditor has found that the clients inventory becomes obsolete very quickly. Will the auditor set

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a) Assume auditor has found that the clients inventory becomes obsolete very quickly. Will the auditor set inherent risk high or low? Also explain after setting the inherent risk what additional measures auditor can take regarding audit of inventory in this case.

b) Materiality is a relative rather than absolute concept.”- explain this statement with an example.

c) Though preparing engagement letter is not mandatory for an auditor, audit firms prepare engagement letter. Why?

Related Book For answer-question

Introduction to Business Statistics

ISBN: 978-1111524081

7th edition

Authors: Ronald M. Weiers

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Posted Date: May 17, 2022 03:01 AM

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a) Assume auditor has found that the clients inventory becomes obsolete very quickly. Will the auditor set

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1 Inherent risk which refers to the susceptibility of an assertion to a misstatement due to error or fraud that could be material individually or in combination with other misstatements before conside... View the full answer

Introduction to Business Statistics

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