User Account

All Pages

Explain the three components of audit risk

Assignment Help Accounting Basics
Reference no: EM133002684

Problem - ASA 200 (Objectives and General Principles Governing an Audit of a Financial Report) states that audit risk is a function of the risk of material misstatement of the financial report (or simply, the "risk of material misstatement") and the risk that the auditor will not detect such misstatement.

a) Explain the three (3) components of audit risk and outline the impact an external auditor has on each of these components of audit risk.

b) Explain why it is important for the auditor to properly assess these risks. In your answer indicate how the assessment of these risks influences the auditor's evidence collecting procedures.

Reference no: EM133002684

Questions Cloud

Create an income statement for gross profit : Create an income statement. On the income statement, include the following five items: Gross profit, EBT, EBIT, EBITDA, Net income.
What the firm paid dividends : A firm's year-end retained earnings balance are P670,000 and P560,000 for 2014 and 2015, respectively. What the firm paid dividends in 2015
Make the consolidation journal entries : Based on the above information, make the consolidation journal entries that Large Ltd will need to pass on 30 June 2020
Find and list the four types of non-statutory deductions : Payroll practitioners should be familiar with the different types. List the four types of non-statutory deductions and give two examples for each.
Explain the three components of audit risk : Explain the three (3) components of audit risk and outline the impact an external auditor has on each of these components of audit risk
What is the value of the company : Ved Ltd has an EBIT of ?5 lakhs per year that is expected to continue in perpetuity. The unlevered cost of capital for the company is 16% and the corporate tax
Should corp pursue the project : Heat Corp. is considering committing, Calculate the NPV of project. The cost of capital for Heat Corp. is approximately 17.5%. Should Corp. pursue the project?
How much was overhead under or overapplied for each product : Briefly comment on the overhead applied per unit under the two overhead allocation methods. i.e. How much was overhead under or overapplied for each product
What would help in assessing risk of investment opportunity : Your broker calls to offer investment, List some of the questions would ask your broker that would help in assessing the risk of this investment opportunity.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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