When conducting an attestation function, the auditor needs to collect information about the company both internally and externally There are several external factors that affect an audit firms business risk and, therefore, acceptable audit risk Identify one of these factors and discuss why it would impact the audit work to be performed What is meant by acceptable audit risk when performing the work of attestation, and what would be some of the characteristics of this risk What type of evidence is collected when substantiating this type of audit risk, and why can this risk be material when reviewing the financial statements of a company

The Answer is in the image, click to view ...

Question: When conducting an attestation function, the auditor needs to collect information about the company both internally and externally. There are several external factors that affect

When conducting an attestation function, the auditor needs to collect information about the company both internally and externally. There are several external factors that affect an audit firms business risk and, therefore, acceptable audit risk. Identify one of these factors and discuss why it would impact the audit work to be performed.

What is meant by acceptable audit risk when performing the work of attestation, and what would be some of the characteristics of this risk?
What type of evidence is collected when substantiating this type of audit risk, and why can this risk be material when reviewing the financial statements of a company?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

When conducting an attestation function, the auditor needs to collect information about the company both internally and externally. There are several external factors that affect an audit firm's...

List and explain 5 key business risks which would impact on the audit of JB Hi-Fi. Include the account and assertion most affected by the risks identified. Be sure to link audit risks to their...

Read the Southwest ApplianceInherent Risk andControlDesign I uploadedthat describesTask 3 beginning on page 20. You will also need to refer back to the case description to perform the assigned task....

Southwest Appliances Inc. WP B.2.1 Inherent Risk and Materiality Memo Initials Date Prepared Reviewed Preliminary Inherent Risk Assessment Management policy of maintaining large inventory to meet...

In his 2009 paper titled ?Market and Political/Regulatory Perspective on Recent Accounting Scandals?, Ray Ball discusses accounting scandals in 2001 and 2002. Provide a summary of the market...

6.In his 2009 paper titled ?Market and Political/Regulatory Perspective on Recent Accounting Scandals?, Ray Ball discusses accounting scandals in 2001 and 2002. Provide a summary of the market...

The following data (stored in Silver) represent the price in London for an ounce of silver (in U.S. $) on the last day of the year from 1999 to 2009: Year Price ($)...

Question: Enter the closing entry based on the adjusted trial balance provided. Remember only one closing entry is required. 000 - Required information Arcadia Enterprises Adjusted Trial Balance As...

What are the largest and the smallest populations of cities in the database? This is what I made so far: Label the first Largest _ Population and the seconed Smallest _ Population. SELECT Largest _...

Find the radius of gyration of a plate covering the region bounded by x=3, x=5, y=0, and y=4 with respect to the y-axis.

Describe how language reflects, builds on, and determines context?

Have you ever found yourself in a situation where you are entirely sure that you are using a term precisely (a good restaurant, a fun party, an affordable car) only to have someone wholeheartedly...

What connotative meanings does each of the following words have for you: religion, divorce, money, exercise, travel, dancing, parenthood? Why do you have the reaction you do to each word?