Homework
In this homework, you will prepare a 2 to 3 pages report that addresses the requirements specified in the case. Fully address each requirement and include at least two current references to scholarly and/or authoritative sources.
Instructions
Specifically you will be required to:
1) Explain the effects on the account of the opening of the first retail store.
2) Describe how the business change will affect audit risk components.
3) Determine expected changes to inventory transactions and balances and specify which will be most affected by the business structure change.
4) Describe the population(s) and recommend a sampling approach for substantive inventory testing.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
The specific course learning outcome associated with this homework is:
o Determine the impact of a change in business structure on audit risk, inventory transactions, and balances using a given sampling approach.