Reference no: EM132728041

Silvah Leasing Ltd. (SLL) is a private company founded over 20 years ago. Its main business is providing lease financing to small to medium-size local businesses for financing their operating equipment, store fixtures, and so on.

• SLL's business is direct lease financing, and the company never takes ownership of any of the leased assets. Leasing is popular with smaller businesses since the economy has been in a recession, and leasing assets rather than buying conserves cash. Many larger financial institutions have become more active in selling leases to the smaller customers that have been

• SSL's main source of business, to increase their own revenues during the recessionary times. Equipment vendors are also increasingly providing financing with equipment sales to increase their own business.

• D. Silvah owns the majority of the common shares and runs the business with three employees. There are two minority shareholders who are family members, M. Silvah and J. Silvah. Your firm has audited SLL for several years. The company's bank demands annual audited financial statements because of SLL's large outstanding bank loan.

Problem 1: How does management's integrity impact the auditor's risk assessment process?

Problem 2: Key concepts to be considered: Identification and prioritization of risks, materiality, audit risk model, quality assurance, control strengths and weaknesses, stopping at risk assessment, and quality assurance