The entitys purchasing agent is required to obtain approval

Reference no: EM13588050

Brown, CPA, is evaluating the risk of material misstatement (RMM) on an engagement. For each of the following, identify the risk component most directly affected matching the risk component from the list provided. Also indicate what effect the situation described would have on this risk by matching the appropriate option from the list provided.

Provided:

A. Control Risk/Decrease Risk

B. Inherent Risk/Increase Risk

C. Detection Risk/Decrease Risk

D. Control Risk/Increase Risk

E. Inherent Risk/Decrease Risk

F. Detection Risk/Increase Risk

Questions:

1. The entity's purchasing agent is required to obtain approval from senior management for purchases in excess of $2,000.

2. A good portion of the entity's fixed asset base consists of capitalized leasehold items.

3. Brown plans to perform extensive tests of details surrounding the payroll function.

4. The entity keeps a large quantity of cash on hand.

5. Brown plans to perform all of tis testing relating to cash at year-end.

6. The entity's computer applications are not protected by password controls.

7. Employees report the hours worked each week without supervisory oversight.

8. Brown will obtain evidence primarily from external sources in testing the entity's receivables.

9. The entity's financial statements do not require use of significant estimates.

10. Brown plans to perform only limited tests of details related to the purchasing function.

Reference no: EM13588050

Questions Cloud

Calculate material yield variance if product m having : calculate material yield variance if product m having standard mix of 500 kg 10 whose standard cost is 2400 and

Robert purchased and plaed in service 100000 of seven-year : robert purchased and plaed in service 100000 of seven-year class assets on august 10 of the current year. he also

Find material usage variance material price variance and : find material usage variance material price variance and material cost variance on the basis of facts which are as

Research and discuss maslows theory of needs and how it is : 1. research and discuss maslows theory of needs and how it is applied to marketing.2. define the stages of the consumer

The entitys purchasing agent is required to obtain approval : brown cpa is evaluating the risk of material misstatement rmm on an engagement. for each of the following identify the

Say the electrical company needs to step down the voltage : say the electrical company needs to step down the voltage from 7200v rms in the power line behind your house to the

A parallel plate capacitor has a capacitance of 10mf and : a parallel plate capacitor has a capacitance of 10mf and its charge with a 20v power supply. the power supply is then

Briefly explain the concept behind inventory turnover and : briefly explain the concept behind inventory turnover and how management uses it to measure their performance in

If the production of 2000 units which were selling at 40 : if the production of 2000 units which were selling at 40 possessing the variable cost 24 and fixed cost 20000.

User Account

All Pages