Week4Auditing Chap. 9-10

9-21The auditor should revise the components of the audit risk warning when the proof accumulated during the audit indicates that the auditors original assessments of inherent risk or control risk ar in any case low or too high or the original assessment of satisfactory audit risk is too low or too high.
The auditor should exercise c are in determining the additive amount of secern that will be required. This should be through with(p) without the use of the audit risk model. If the audit risk model is used to determine a revised planned maculation risk, there is a danger of non increasing the evidence sufficiently.

? Multiple Choice Questions From CPA Examinations

9-22a.(4)b.(4)c(1)

9-23a.(1)b.(1)c.(1)

9-27a.The profession has not established clear-cut guidelines as to the appropriate preliminary estimates of materiality. These are matters of the auditors professional judgment.
The illustrative materiality guidelines in Fig 9-2 (p. 253) are used in applying materiality for the problem. Other guidelines may be equally acceptable.

|STATEMENT COMPONENT |PERCENT GUIDELINES |DOLLAR field |
| | |(IN MILLIONS) |
|Earnings from continuing | | |
|operations before taxes |3 - 6% |$12.



5 - $ 25.1 |
|Current assets |3 - 6% |$67.6 - $135.2 |
|Current liabilities |3 - 6% |$36.5 - $72.9 |
|Total assets |1 - 3% |$38.6 - $115.8 |

b.The allocation to the individual accounts is not shown. The difficulty of the allocation is far more important...If you want to annoy a full essay, order it on our website: Orderessay



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