Question

Explain how the levels of acceptable audit risk and materiality you selected in this assignment might affect the remainder of the audit. Specifically, what effect would lower levels of acceptable audit risk and materiality have on the audit compared to the levels you selected?

Answer 1

Answer" Spepraining how the the level of audlid aisk emel mestericuity levels in your chosen acceptance effect the rest of the crudit, en peutti cular the level of oi's ķ omd meestericulity on the article cuelit, along with the levels you cloose determines the level of auclit sisk, how much evidence to collect cluring the auclit. High cuelits require less assurance for low cuelit risk but more time, labor and expense cars required. Accounts are more risky because they diss bigger cmd easier to error, less medenicuity will reebeee the cuelito Auditors remove exccess supplies for audit cuelets. Different types of costs will incsecus for accounts to collect evidence, Helps eveli toss cmdlerstend the neetuins

of accounts anel information. But the appropriate evidence és prenneel for presenteetion, This section cuelits financieel steedements Omd consichers meetesicuity en accordemes with the cuelit Aines as accepted by the auelit as possible. Auclit risk aflects the system of generawuy accepted Quiclit Stemclerrels. Typically, reporting Stemcaocls cmel pint cuelitor's financice reports. It is important to think together to evaluate the impact of theet process. This transfer reguisement establishes the physicauity of performance for most balance ceceounds. This Expiciing how we choose the clispicy physicality amount for the given accounts. profitable accounts, bucl clebt accounts, Payments accounts, Respectivey, anco risky anel cost alot. Getting confirmation is easy to handle, but the higher

the level of physicality the higher, The mceterial points out that genereury: individueel or consolidated matters cess emportent when considering certain aspects of financice statements w alay of Simultaneously accepting accepted accounting methods, so Other thigs usually clo not go unnoticed. Genexcury, in cau citescary respects the representection of the excaminer's report in accordance with the accounting principles informs the aulitori Because financieel decisions Muell solely are not necessarily wrong,