Assess control risk by indicating which factors, ONLY from the case, would either increase or decrease the control risk of misstatements in the occurrence of sales revenue and the accuracy of the warranty expense account. In your answer, identify existing internal controls that are relevant to the specified audit objectives and briefly explain how each internal control could prevent/detect misstatements for the specified audit objectives.

Conclude with an overall assessment of the qualitative level (high/medium/low) of control risk for each of the sales revenue and warranty expenses account. 

Are the factors considered to be scenarios from from case study which I then refer back to the objectives?

Answer rating: 100% (QA)

Yes you should refer to the objectives of the audit to assess the control risk and identify relevant ... View the full answer