Question: The following are concepts discussed in this chapter: 1. Preliminary judgment about materiality 2. Control risk 3. Risk of fraud 4. Estimated total misstatement in

The following are concepts discussed in this chapter:
1. Preliminary judgment about materiality
2. Control risk
3. Risk of fraud
4. Estimated total misstatement in a segment
5. Planned detection risk
6. Estimate of the combined misstatement
7. Acceptable audit risk
8. Tolerable misstatement
9. Inherent risk
10. Risk of material misstatement
11. Known misstatement

Required
a. Identify which items are audit planning decisions requiring professional judgment.
b. Identify which items are audit conclusions resulting from application of audit procedures and requiring professional judgment.
c. Under what circumstances is it acceptable to change those items in part a after the audit is started? Which items can be changed after the audit is 95% completed?

Step by Step Solution

★★★★★

3.45 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a The following terms are audit planning decisions requiring professional ... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

185-B-A-A-P (280).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Under what circumstances is it acceptable to confirm accounts receivable before the balance sheet date?

Under what circumstances is it possible to recognize neither gain nor loss on the sale of an asset previously received as a gift?

What is goodwill? Under what circumstances is it recorded on financial statements?

Requirements a and b. Identify which items are audit planning decisions requiring professional judgment. Identify which items are audit conclusions resulting from application of audi procedures and...

Auditing and assurance services 16th edition 1) preliminary judgment about materiality 2) control risk 3) risk of fraud 4) inherent risk 5) risk of material misstatements 6) known misstatement 7)...

your assistance is greatly appreciated.Please answer the following attached 1. What is the audit risk model and its components? Of what importance is this to auditors? 2. What factors affect an...

Match #2 (8 points) Match the terms below (a-h) with the definitions provided below (1-8): a. preliminary judgment about materiality b. inherent risk c. planned detection risk d. audit assurance e....

Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...

Part 5 section 2 management assertions matching questions 1-8 I ' I Name p(\\V)v\\ C:V\\ L SO LLrrt:o10 5:30 Class FORM A Part 1 Multiple Choice (152 Points) AF 470 Financial Auditing Midterm Exam...

Abernethy and Chapman INFORMATION FROM PREDECESSOR AUDITOR Potential Client Form Completed By Predecessor Auditor Date of Interview (1) Discuss the predecessor auditor's evaluation of the integrity...

A capacitor has an accumulated charge of 600 with 5 V across it. What is the value of capacitance?

A uniform rod of mass m and length 5a is bent into the shape shown and is suspended by a wire attached at point B. Knowing that the rod is hit at point A in the negative y direction and denoting the...

lim x - 3 x 2 6 x 9 x 3 =

You receive an invitation message from your friend for their birthday. Reply to their message to accept or decline their invitation.

Vica Juices Limited is considering international expansion into China. In China, the names of products have significant meanings and can be strong drivers of companies success. Identify the most...

Utilizing the XYZ Conflict Model, complete the four situations below. Write the XYZ statement you would use to resolve the conflict, keeping in mind the goal of maintaining human relations. A...

Sketch the vector plots for the following vector fields. Find the curl and divergence: a. x +y b. ? . 27 d. -y +x . f. (x+y) +(y-x)

Which of the following statements is correct concerning related-party transactions? a. In the absence of evidence to the contrary, related-party transactions should be assumed to be outside the...

Read "The Payroll Payoff" by Edward Nagel at www .camagazine.com/archives/print-edition/2004/may/ regulars/camagazine16292.aspx , and then answer the following questions. REQUIRED a. For each of the...

Recording long-term credit transactions sounds simple enough- record the debt, and expense the interest. Yet this is not always the case. Consider the Institute of Chartered Accountants of Ontario...

Who should be responsible for the approval of new debt such as notes payable?

You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff...

Assume the total cost of a college education will be $350,000 when your child enters college in 17 years. You presently have $56,000 to invest. What annual rate of interest must you earn on your...

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural...