Almost a senior

Almost a senior - T he users of the financial statements:...

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The users of the financial statements: Creditors, CDIC (Government) Audit Risk = IR x CR x DR Inherent Risk – High Control Risk – Maximum*(Cannot rely on internal controls) Detection Risk – Medium Unresolved issues and recommendations to discuss with the audit manager: Account in question Issue Recommendat ion Rationale Accrued interest on money-market savings accounts (L) Accrued interest on money-market accounts is understated Adjust balance by $1,000,000 Although in past the interest expense has been recognized when posted to the money-market accounts, there are significantly more money-market accounts now and a change is necessary to reflect actual operating performance Regular savings accounts balance (L) General ledger balance doesn’t reconcile with subsidiary ledger Further investigation and may need to adjust balance by $153,010 Tim doesn’t seem to be qualified enough for his position and he seems to be underpaid, which may increase the risk of fraud. Although the amount is immaterial to the audit, the
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Almost a senior - T he users of the financial statements:...

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