CABLECO Parts II - factors 3 How information that is obtained is factored into audit planning 4 How the" audit team" interacts and works

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ACCY 360/560 CableCo Audit Simulation Setting: PRS has done some preliminary planning of the audit engagement and now must visit CableCo to obtain more specific information to develop their audit plan. Acts II & III focus on this audit planning process and the search for relevant information. Specific matters: In general, be attentive to these issues: 1. The emphasis placed on planning (i.e., "doing your homework"). This is essential in a highly competitive environment that requires both effectiveness and efficiency. 2. The relevance of the “audit risk model” (SAS No. 107) to every audit area. Related to this is the constant consideration of "materiality"--involving both quantitative and qualitative
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Unformatted text preview: factors. 3. How information that is obtained is factored into audit planning. 4. How the " audit team " interacts and works together for the good of the client and the firm. Discussion questions: 1. What inherent risk and control risk factors come to light in Act II, and how do they influence audit planning? 2. How does the audit team deal with the apparently poor relationship with key client personnel (the controller)? 3. What potential management letter recommendations are discovered in Acts II & III? 4. How would you characterize the audit “strategy” (i.e., the type of audit approach) discussed in Act III?...
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This note was uploaded on 04/22/2011 for the course ACCY 360 taught by Professor T during the Spring '08 term at Northern Illinois University.

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