1. Consult paragraph 5-8 of PCAOB audit standard no.8 and paragraphs 7-10 of PCAOB Auditing Standard No.12. Based on your understanding of inherent risk assessment and the case information, identify three specific factors about Sunbeam that might cause you to elevate inherent risk
2. Consult Paragraphs 8-10 of PCAOB Auditing Standard No. 13. Comment about how your understanding of the inherent risks identified at Sunbeam (in Question 1) would influence the nature, timing, and extent of your audit work at Sunbeam
3. Consult Paragraphs 29 and 32 of PCAOB Auditing Standard No. 5. Next briefly identify the types of revenue earned by Sunbeam. Do you believe that any of the different types of revenue earned by Sunbeam "might be subject to significantly differing" levels of inherent risk? Why or why not?
4. Consult Paragraphs 52-53 of PCOAB Auditing Standard No. 12. For one of Sunbeam's revenue types (please choose one), brainstorm about how a fraud might occur. Next identify an internal control procedure that would prevent, detect, or deter such a fraudulent scheme.