Types of risk that come into play during the audit process

Assignment Help Accounting Basics

Reference no: EM13765423

There are many types of risk that come into play during the audit process. Describe the following four main risks:

Business risk
Financial reporting risk
Engagement risk
Audit risk

In your each of your descriptions, provide at least 1 example scenario, and answer the following:

How would each of your examples be mitigated?
Which do you feel would be the hardest to mitigate? Why?
How does materiality play into the risk analysis?

Reference no: EM13765423

Questions Cloud

Rise to a triangular arbitrage opportunity : What is IFE? If the expected US one-year interest rate is 0.25%, expected UK one-year interest rate is 0.5%, use IFE to predict the expected pound spot rate in dollar one year from now.

Telecommunications-networking routing algorithms : Complex routing algorithms are used to maintain routing tables. What algorithms are used, and how do they work? What are the advantages and disadvantages of each?

What is the target variable cost per mouse : A company believes it can sell 5,600,000 of its proposed new optical mouse at a price of $10.00 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..

Construct one original descriptive argument : Descriptions "describe"-they depict the "what is" of a statement. Prescriptions "prescribe"-they express the "what ought to be" of a statement. Construct one original descriptive argument and one original prescriptive argument for the topic you sel..

Types of risk that come into play during the audit process : There are many types of risk that come into play during the audit process. Describe the following four main risks:

Bond makes annual payments and matures four years : You purchased one EAW, Inc. 6 percent coupon bond one year ago for $1,020. The bond makes annual payments and matures four years from now. You sell the bond today when the required return is 5 percent. The inflation rate was 2.8 percent over the past..

Role in the auditing process and profession : Ethics plays a major role in the auditing process and profession. Discuss the ethical theories that can be utilized to deal with issues that can arise during the audit process. Address the following topics:

What was the firms operating profit : Lurch Fuel Pumps, Inc. had sales of $2,500,000 and cost of goods sold of $1,710,000. Selling and administrative expenses represented 10 percent of sales. Depreciation was 6 percent of the total assets of $4,680,000. What was the firm’s operating prof..

What accounts are included in the revenue cycle : 1. What accounts are included in the revenue cycle? 2. Discuss the U.S. Securities Exchange Commission's (SEC) criteria for revenue recognition.

User Account

All Pages