ACC 490 Week 3 Learning Team Assignment

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ACC 490 Week 3 Learning Team Assignment

Learning Team Ch. 6 & 7 Textbook Exercises

Resources: Ch. 6 & 7 of Modern Auditing: Assurance Services and the Integrity of Financial Reporting

Prepare written answers to the following assignments from the text Modern Auditing: Assurance Services and the Integrity of Financial Reporting:

Ch. 6: Comprehensive Question 6-26 Audit Programs and Assertions

Ch. 7: Case 7-25 New Client Acceptance, Part b

Learning Team Assessing Materiality and Risk Simulation

Resources: Assessing Materiality and Risk simulation on student website

Complete the Assessing Materiality and Risk simulation located on the student website.

Prepare a 350-word response to following questions after completing the simulation:

Why do certain accounts have to be audited 100%?

Why is materiality allocated only to those accounts that are sampled?

Is any component of audit risk within the control of the auditor? Explain.

How are the three risks that make up audit risk inter-related?

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