Audit Risks and Materiality Sample Questions

 To ensure that all concerns / complaints are dealt with in accordance with the

To begin the audit, a review of previous 2 years of financial statements, provided by current or previous auditors for any unusual business transactions relating to revenue.

Change in net assets for the year. Could include the changes for both the governmental and business type activities.

It is importance that you of selecting the appropriate method to help reach your purpose. When caring out an observation you should carry out the type of observations to suit desired aim of it.

A qualified auditor should make wise judgment when planning an audit. The auditor should be inquisitive and should be quick to notice some irregularity in the financial statements. This inquisitiveness should have guided the auditor to understand why Leslie Fay sales increasing while sales in the overall garment industry had been going down. This would have led to the querying by the auditors as to how Leslie Fay was the only garment industry that had not suffered a decline in sales during the late 1980s and early 1990s recessionary period. This in turn would have led to a need to plan an audit on the revenue cycle and tests on the internal controls in relation to the revenue cycle.

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Quality Objectives - The quality objectives define measurable goals relative to the company's quality management system. Requirements on the quality objectives are in ISO 9001:2008 section 5.4.1.

The aim of this report is to develop an audit plan using the 2007/2008 annual reports of the WesFarmers. This report will provide an understanding of the underlying concepts of an overall audit strategy. This strategy will bring forward the direction and scope of the WesfFarmers audit plan. This report will address five major points these are as follows:

To ensure that all concerns / complaints are dealt with in accordance with the procedures.

The audit work has been performed according to the original or a modified audit plan;

bebe target is a hip, sexy, sophisticated, body-conscious woman who takes pride in her appearance (bebe, 2010).

• Directing appropriate attention to the different areas of the audit such as assessing materiality, so that when the detailed audit plan is prepared, audit procedures can be directed towards the material amounts.

b) The auditor should pay close attention to the changes of company’s financial result and analyze those changes in time to see if they are reasonable. Most auditors should have detected this kind of material misstatement in company’s financial results, because this defalcation is caused by a personal factor.

The concept of materiality provides a topic for continuing educational discussion that many firms across the country find essential to the development of their audit staff. Measuring and using materiality to obtain desired results during an audit becomes the responsibility of the staff member of a CPA firm. Partners and managers of a firm typically allow the staff member to use his/her judgment when applying this concept during the fieldwork of an audit. The overall success of an audit relies at least in part on the materiality concept; therefore, staff members’ continuing education on the concept becomes important and necessary. This report will define the term materiality, determine how to measure materiality, and

Findings must be recorded, not just as a once off procedure, but continual reviews must take place and updated as necessary. This must be done in consultation with employees.