Question: I am taking Auditing and have an assignment in Apple Blossom Cologne company 5e by Jack W. Paul, Assignment #1-6, Assessing the Risk of Material
I am taking Auditing and have an assignment in Apple Blossom Cologne company 5e by Jack W. Paul, Assignment #1-6, Assessing the Risk of Material Misstatement Due to Fraud. Read the Permanent File material (Section II) and internal control questionnaires in Assignments 14- and 6-11. Next examine each of the risk factors. Based on the permanent file and the internal control questionnaires, identify each of those factors that may impact the risk of fraud in the Apple Blossom Cologne Company audit, as far as you can determine. For each factor that you identify, comment on (1) why this factor may have a significant impact of the risk of fraud in this audit, and (2) the evidence and actions required to reduce the risk (consult appropriate auditing standards such as SAS 82, Consideration of Fraud in a Financial Statement Audit). I have no idea what this report should look like, does anyone have any hints or suggestions.
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