Audit risk model and discuss how they interact

Assignment Help Auditing
Reference no: EM13316903

Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), wants you to combine and discuss the following issues into a single coherent 1½ page training memo for new audit assistants:

1) Audit risk is a key consideration and guide to planning an audit - explain why?

2) List the key components of the Audit Risk Model (ARM) and discuss how they interact?

3) How can well-structured or judicious statistical sampling cost-effectively assist with estimating the components of the Audit Risk Model and/or resolve an unsatisfactory outcome of that model? and

4) Discuss the key strengths of and key differences between random sampling, haphazard sampling, and judgement sampling and how those differences might affect the discussion in part 3.

Reference no: EM13316903

Questions Cloud

What is the probability that the pile will survive a load : Assume the capacity of a pile supporting a transmission tower is modeled with a log-normal random distribution with a mean of 250 tons and a c.o.v. of 20%. a) What is the probability that the pile will survive a load of 275 tons
Determine the change in storage during month of september : The average flow rate of the River Tiger into the lake was determined to be 3.5 m3/s and the average flow rate of the River Yankee out of the lake was measured at 2.5 m3/s (ignore any loses due to evapotranspiration).
What is the net force on the roof : If wind blows at 32 m/s over a house, what is the net force on the roof if its area is 238 m2 and is flat
How fast does air flow in the duct : A 20 cm radius air duct is used to replenish the air of a room 9.2 m multiplied by 5.5 m multiplied by 5.0 m every 10 min. How fast does air flow in the duct
Audit risk model and discuss how they interact : Audit risk is a key consideration and guide to planning an audit - explain why and list the key components of the Audit Risk Model (ARM) and discuss how they interact?
Calculate what is the peak discharge at the reach outlet : Use the Muskingum method to route a flood through a reach a river. The base flow is 100 cfs, and the incoming flood flow increases 50 cfs every 2 hr over a 6 hr period and the subsides at the same rate.
What is the buoyant force on the diver in sea water : A scuba diver and her gear displace a volume of 65.0 L and have a total mass of 64.0 kg. What is the buoyant force on the diver in sea water
Find a problem in managing global supply chains : MGMT 4337 - Team Case Analysis Find a problem in managing global supply chains from the real business world and identify specific SCM concepts/tools that can be applied to the problem
Compute the density of the rock : A geologist finds that a Moon rock whose mass is 10.15 kg has an apparent mass of 5.68 kg when submerged in water. What is the density of the rock

Reviews

Write a Review

Auditing Questions & Answers

  Internal audit

Describe and evaluate this type of internal audit. What types of organisation would it be most useful for?

  Accounting professional and ethical standards

Code of Ethics for Professional Accountants

  Prepare swag''s consolidated balance sheet

Prepare Swag's consolidated balance sheet

  Auditing and assurance

Notable operational challenges for 4X Heavy Ltd faced in 2012/2013 were but not limited to

  State of the company’s industry and associated risk factors

Audit partner is concerned about his lack of knowledge of the industry the company is operating in, state of the company's industry and associated risk factors

  Prepare a memo to the audit partner

Prepare a memo to the audit partner on the ‘state of the company's industry' and associated risk factors.

  Adjusting or non- adjusting events

State whether Event is adjusting or non-adjusting event.

  Audit financial data

As a consequence an accounts payable clerk and financial accountant were made redundant from the business during the year.

  Identify principal audit risk

To identify principal audit risk and corresponding audit procedures

  Auditing and assurance

Show the audit inherent risk and rate the risk as low, medium or high.

  National health reform

Explain the role of the following three 'bodies' in National Health Reform

  Prepare a memo on the state of the company''s industry

Prepare a memo on the 'state of the company's industry' and associated risk factors.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd