Homework Answers
Answer: c Inherent risk id high, detection risk is high, increasing audit risk.
As the co. is fashion co and importing materials and exporting finished goods in both the cases the risk is high with import and export procedures.
As its including forex transactions the inherent risk is high which increase auditors detection followwd by high audit risk.
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Entity A is a fashion company that imports material and exports finished garments all over the...
QUESTION 1 Considering the risk of overstatement of receivables due to premature revenue recognition that inflates...
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Review Garcia and Foster’s calculations of materiality
thresholds for the 20X2 Audit . Determine if the auditors correctly
applied the materiality concept in their risk assessment
procedures. Describe any problems you find and provide suggestions
for improvement. This question relates to step 2 of the Garcia and
Foster Audit Plan.
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understanding of the client’s environment including internal
controls. This understanding allows auditors to identify
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Review the Audit report (found in the 10-K) for the following two companies. Highlight or summarize...
Review the Audit report (found in the 10-K) for the following
two companies. Highlight or summarize
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Audit Firm, Financial statement
period covered).
Note:
1. Each Company may have two audit reports (one opinion on
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audit of internal controls) or the two opinions may be combined
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LO 10-6, 10 10-36 Based on an assessment of audit risk, the auditors are concerned with...
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1) Discuss the company's top risks? 2) Discuss whether the company treats risk reactively or proactively?...
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Review Garcia and Foster’s calculations of materiality
thresholds for the 20X2 Audit . Determine if the auditors correctly
applied the materiality concept in their risk assessment
procedures. Describe any problems you find and provide suggestions
for improvement. This question relates to step 2 of the Garcia and
Foster Audit Plan.
Step 2: Requires the audit team to obtain and document its
understanding of the client’s environment including internal
controls. This understanding allows auditors to identify
significant risks in the audit...
Review the Audit report (found in the 10-K) for the following
two companies. Highlight or summarize
differences between the reports (other than the name of Company,
Audit Firm, Financial statement
period covered).
Note:
1. Each Company may have two audit reports (one opinion on
financial statements and one for
audit of internal controls) or the two opinions may be combined
into one report.
2. You are not required to review the entire 10-K. Find the
audit report in the 10-K...
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