Question: (Effects of audit strategies on assessing control risk) As an audit manager at Guns & Ho, CPAs, you have been scheduled to serve as the discussion leader for an inoffice training session on consideration of internal control in a financial statement audit.
Required:
Prepare an outline of comments you plan to make to indicate similarities and differences in how each of the following items is handled under a primarily substantive approach.
a. Obtaining and documenting the understanding.
b. Performing concurrent tests of controls.
c. Making an initial assessment of control risk.
d. Performing additional or planned tests of controls.
e. Making a final assessment of control risk.
f. Documenting the control risk assessment.
g. Designing substantive tests.
IIA (adapted)