Distinguish between sampling and non-sampling risk

Reference no: EM13184188

Question 1.

a) Identify and define the components of the quantified audit risk model.

b) Indicate which of these components is under the control of the auditor and indicate the relationship of this component to the other components of audit risk.

Question 2

'The auditor shall obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the auditor's opinion' - ASA 500 (ISA 500).

Identify the factors that may affect the sufficiency and appropriateness of audit evidence and briefly explain how they impact on these criteria.

Question 3.

a) Distinguish between sampling and non-sampling risk.

b) Identify and describe the four types of sampling risk that may occur in audit sampling including how they occur and how they impact an audit.

Question 4.

Define tolerable misstatement, tolerable rate of deviation and confidence level for both tests of control and substantive testing.

Question 5.

Auditor's expectations for client input during the audit engagement.

Discuss in terms of the following both the auditor's responsibility to (were appropriate) and the client's responsibilities to the auditor.

ASA210 ASA800 - Preconditions

ASA240 - Fraud Risk

ASA250 - Compliance with laws

ASA260 - Communications

ASA315 - Entity and environment

ASA450 - Misstatements

ASA502 - Litigation and claims

ASA540 - Accounting estimates

ASA540 - Related parties

ASA560 - Subsequent events

ASA570 - Going concern

ASA580 - Written representations

ASA600 - Group audits

ASA720 - Other information

Reference no: EM13184188

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