"Minimizing Audit Risk" Please respond to thefollowing:
According to the text, auditors have to make judgmentsconcerning materiality on every audit. Since the auditing standardsgive no formal guidance for how to determine materiality, auditorsmust rely on their own experience. Determine at least three (3)qualitative factors that affect the auditor's judgment. Provide arationale for your response.
According to the text, auditors rely on the audit risk formulato determine the types and amount of audit evidence to collect inorder to keep the overall audit risk of engagements to a minimum orbelow defined tolerable limits. Suggest an alternative to the auditrisk equation in order to mitigate audit risk. Support yourrationale with examples of the successful use of the alternativestrategy.
"Minimizing Audit Risk" Please respond to thefollowing:
According to the text, auditors have to make judgmentsconcerning materiality on every audit. Since the auditing standardsgive no formal guidance for how to determine materiality, auditorsmust rely on their own experience. Determine at least three (3)qualitative factors that affect the auditor's judgment. Provide arationale for your response.
According to the text, auditors rely on the audit risk formulato determine the types and amount of audit evidence to collect inorder to keep the overall audit risk of engagements to a minimum orbelow defined tolerable limits. Suggest an alternative to the auditrisk equation in order to mitigate audit risk. Support yourrationale with examples of the successful use of the alternativestrategy.
