Potential responses to financial statement level risks

Assignment Help Financial Accounting

Reference no: EM13863757

In designing further audit procedures, the auditors should assess the risks of material misstatement of the financial statements.

Required:

a. Describe the auditors' general approach to such risk assessment.

b. Identify potential responses to financial statement level risks.

c. Explain what is meant by a significant risk.

d. Describe how a significant risk should be treated in an audit.

Reference no: EM13863757

Questions Cloud

Using the straight-line method of depreciation : Garbo Company acquired equipment on January 1, 2013 for $70,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-y..

How would you plan for a company divisional capabilities : How would you plan for a company's divisional capabilities? How does one plan to address divisional limitations? What methods may be used to fill gaps between capabilities and limitations

What is the net present value of the investment of machine : A company is considering the purchase of a new machine that will cost the company $30,000 and will be worth zero at the end of 3 years. Their current tax rate is 20% and they will depreciate the machine $10,000 over the next 3 years. The cost of capi..

Identifying threats relevant to a particular organization : Explain at least two different risk assessment methodologies - describe the key approaches to identifying threats relevant to a particular organization.

Potential responses to financial statement level risks : In designing further audit procedures, the auditors should assess the risks of material misstatement of the financial statements. Describe the auditors' general approach to such risk assessment. Identify potential responses to financial statement lev..

What is projected net cash flow : When you first start out, you can expect sales to be well below 1,000 cups daily. what is your projected net cash flow if you only sell 300 m medium cups of coffee daily (m-f) at $3.50 per cup and have expenses of $6,000 for the week?

Prepare dressers adjusting entry : Dresser Company’s weekly payroll, paid on Fridays, totals $8,080. Employees work a 5-day week. Prepare Dresser’s adjusting entry on Wednesday, December 31, and the journal entry to record the $8,080 cash payment on Friday, January 2.

Compute service revenue and operating expenses : Kelly Company had cash receipts from customers in 2014 of $150,220. Cash payments for operating expenses were $97,860. Kelly has determined that at January 1, accounts receivable was $13,810, and prepaid expenses were $18,340. At December 31, account..

Brief overview of the business and why you chose business : Pick a country in Central or South America to open a business (student choice for type of business and country). Give a brief overview of the business, why you chose the business and why you choose the Country

User Account

All Pages