Reference no: EM133335544

Assignment:

Inherent Risk

In this report you need to include a discussion of what your conclusions in your business risk analysis and your analytical analysis means for the conduct of the audit. In particular, you should discuss what accounts/cycles you feel are high inherent risk and which are at lower levels of risk. In making these decisions, you should consider factors such as unusual or unexpected fluctuations, audit complexity (points to consider is it an estimate with a lot of subjectivity?), and risk of material misstatement due to management bias. Refer to your textbook and Audit Standards for further guidance.

As in Part 1, you are expected to perform a thorough search, using a variety of electronic sources. This is necessary in order to obtain explanations for fluctuations, deviations, etc.

Audit risk

Now that you have familiarized yourself with your client, you should have enough information to set audit risk (based upon your assessment of engagement risk). Ensure that you consider the relevant factors that would heighten the risk of the engagement to the auditor (refer to your textbook, audit standards, and slides regarding how to set audit risk).

Materiality

Once you have set audit risk, another important decision is determination of materiality. In order to determine materiality, you should refer to the Audit Standards, the textbook, as well as materials posted to the course website, and any other relevant professional materials.

Please consider company as TD bank 2021 management discussion and analysis report.