Josh and Sharon are conducting the audit of Cloud 9. During an interview with the CFO, they learn that top-level management and the board of directors adopted a code of conduct that emphasizes the importance of management and other employees acting with integrity. Cloud 9’s board members and senior managers attend training and awareness sessions on the code at least annually. In addition there has been a rigorous process of embedding the code’s main points throughout the company’s policies and procedures, most of which have been rewritten in the previous two years. Josh and Sharon also conduct interviews with employees at all levels within Cloud 9. They find that all employees have attended training on the code of conduct.

Discuss this in terms of the Audit Risk Model. How would this information effect your work?

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The audit risk model determines the total amount of risk associated with an audit and describes how this risk can be managed The calculation is Audit ... View the full answer