Details of balances detection risk and analytical procedure

Reference no: EM13233460

Imagine that you are a new auditor scheduled on a year-end audit engagement.

Your senior has instructed you to test the Accounts Receivable account. The account is large and contains many customer balances, so you have been instructed to use sampling techniques for your testing.

Required:
Describe the audit risk model explaining the relationships of tests of details of balances detection risk and analytical procedures detection risk.
What is the detection risk related to your task of auditing Accounts Receivable?
Does the risk of incorrectly rejecting the Accounts Receivable balance affect your audit risk when using the audit risk model? What negative impact does incorrect rejection have on the audit?

Reference no: EM13233460

Questions Cloud

How each function relates to your own organization : Prepare a 700- to 1,050-word paper in which you define the four functions of management (planning, organizing, leading, and controlling). In your paper, include an explanation of how each function relates to your own organization.

Find the error in the following pseudocode : Find the error in the following pseudocode

Violations of the respect employees : Werhane and Radin contend that Employment At Will is violations of the respect employees are due as persons.

Evaluate the planning function of management : Prepare a 1,050- to 1,400-word paper in which you address the following for your selected organization.

Details of balances detection risk and analytical procedure : Describe the audit risk model explaining the relationships of tests of details of balances detection risk and analytical procedures detection risk.

Explain the temperature of a sample of co is lowered : indicate whether the process is always spontaneous, never spontaneous, spontaneous at high temperature or spontaneous at low temperature.

Calculate the amount of additional reserve the bank : b)calculate the amount of additional reserve this bank would like to loan out to customers c)if this bank loans out the reserves you calculated in part ( b above, how much will the money supply change as a result)

Changing image of religious institutions in 18 century : I have been assigned a final paper in which I need to discuss how advances in science and engineering contributed to the changing image of religious institutions in eighteenth century Europe

What will the following pseudocode program display : What will the following pseudocode program display

User Account

All Pages