Justify at least 10 selections from the appropriate/inappropriate options. When doing so, consider the following: .

Describe how risk assessments influence an audit strategy . Describe applicable audit strategies for a given engagement

25. Economic conditions, govern st accounting practices? Appropriate 26. Have engagement personnel stained knowledge of PM's organization and operating characteristics? Appropriate ts due to error or fraud? Appropriate Appropriate il control to plan the audit? Appropriate unting information? Appropriate 31. estments in PM stock are material? Inappropriate ability Has the adequacy of the accounting records been assessed for proper: actions to permit the appropriate financial statement classification? Appropriate o permit the recording of appropriate monetary amounts? Appropriate 34. Re tions in g period? Appropriate Have the following factors regarding the integrity of management been consider ed in planning the audit: 35. Re es of local attorneys, bankers, and other business leaders regarding PM's standing in the community? Appropriate 36. PM's credit rating? Appropriate 37. Have inquiries of a sample of PM's custorgers regarding PM's credit-granting policies been made? inappropriate V. Assessing risk 38. Has detection risk been appropriately restricted to determine how much inherent risk can be accepted? Inappropriate 39. Has consideration been given to permitting PM's internal auditors to make the assessment of inherent risk and Inappropriate valuations of significant accounting estimates? control risk is assessed at below the maximum level: 40. Is the audit fee high enough to handle any likely litigation? Inappropriate 41. Have specific internal control activities that are likely to prevent or detect material misstatements in those asserti Appropriate en identified? If control risk is asses maximum level for some or all assertions: 42. Is the scope of substantive i app lately decreased Inappropriate 43. Have tests of controls to performe approgr VI Illegal acts Have the fo the risk that PM. as not.co