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ACC 490 Week 3 Learning Team Assessing Materiality and Risk Simulation

ACC 490 Week 3 Learning Team Assessing Materiality and Risk Simulation
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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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