Assessing control risk, homework help

11-21 (Assessing control risk) An auditor is required to obtain a sufficient understanding of each of the components of an entity’s system of internal control to plan the audit of the entity’s financial statements and to assess control risk for the assertions embodied in the account balance, transaction class, and disclosure components of the financial statements.

Required

a. Explain the reasons an auditor may assess control risk at the maximum level for one or more assertions embodied in an account balance.

b. What must an auditor do to support assessing control risk at less than the maximum level when the auditor has determined that controls have been placed in operation?

c. What should an auditor consider when seeking a further reduction in the planned assessed level of control risk?

d. What are an auditor’s documentation requirements concerning an entity’s system of internal control and the assessed level of control risk?

 
"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "GET10" in your order"

If this is not the paper you were searching for, you can order your 100% plagiarism free, professional written paper now!

Order Now Just Browsing

All of our assignments are originally produced, unique, and free of plagiarism.

Free Revisions Plagiarism Free 24x7 Support