. Auditor estimated the following Planned Detection Risks for the cycles: 1. Sales and Collection Cycle: High...
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Auditor estimated the following "Planned Detection Risks" for the cycles: 1. Sales and Collection Cycle: High 2. Acquisition and Payment Cycle: Medium 3. Payroll and Personnel Cycle: Low 4. Inventory and Warehousing Cycle: Medium 5. Capital Acquisition and Repayment Cycle: Medium Required: 1. Which cycles will become the easiest and the hardest to audit? Please explain in detail with your own examples. (10 points) 2. How will "highly effective internal controls" affect the given "planned detection risks?" Please explain in detail with your own examples. (15 Points) 3. How will "acceptable audit risk" affect "planned detection risk?" Please explain in detail with your own examples. (15 Points) Auditor estimated the following "Planned Detection Risks" for the cycles: 1. Sales and Collection Cycle: High 2. Acquisition and Payment Cycle: Medium 3. Payroll and Personnel Cycle: Low 4. Inventory and Warehousing Cycle: Medium 5. Capital Acquisition and Repayment Cycle: Medium Required: 1. Which cycles will become the easiest and the hardest to audit? Please explain in detail with your own examples. (10 points) 2. How will "highly effective internal controls" affect the given "planned detection risks?" Please explain in detail with your own examples. (15 Points) 3. How will "acceptable audit risk" affect "planned detection risk?" Please explain in detail with your own examples. (15 Points)
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iQuestion If the risk of material misstatement in some areas is high then the auditor needs to be more cautious and alert in course of an audit If the ... View the full answer
Related Book For
Auditing and Assurance Services Understanding the Integrated Audit
ISBN: 978-0471726340
1st edition
Authors: Karen L. Hooks
Posted Date:
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