DISCUSSION QUESTIONS:
1. Define materiality and explain its importance in the audit planning process.
2. What steps can the auditor take to quantify whether a misstatement is material or significant or insignificant?
3. How should our auditors adjust their audit approach to account for these risks?
4. As an auditor how would you determine which divisions or subsidiaries you would audit? How would you prioritize? Would you audit all every year, rotate or what would be your method?
5. Identify and describe the factors important in assessing an audit client's business risk and risk of material financial misstatement.
6. When would it be appropriate for the auditor to document the accounting systems and to perform walk through transaction through the major accounting cycles such as acquisition and inventory?
7. List and discuss matters of planning that auditors should consider related to the client's computer environment and describe how CAAT's can be used to improve the efficiency of the audit process.
8. Explain auditor's responsibilities with respect to a client's failure to comply with laws and regulations.
9. Explain the auditor's responsibility for fraud risk assessment and define and explain the differences among several types of fraud and errors that might occur in an organization.
ANSWER EACH QUESTION IN 200 OR MORE WORDS.
USE CITATIONS AND REFERENCES PLEASE.
USE APA GUIDELINES.