You Are a New Employee at the Accounting Firm Murray

question 35

Essay

You are a new employee at the accounting firm Murray & Murray, CPAs. Before you are assigned to your first audit, your supervisor tests your knowledge and asks you to explain the term "scope" in the context of a financial statement audit.
Required:
A. Provide a definition of scope.
A. The scope of an audit is the type and amount of audit work to be performed.
B. Describe what influences an auditor's determination of scope.
B. The auditor's assessments of risk and materiality influence the scope of the audit. For instance, if an auditor sets a lower materiality amount or would like to substantially reduce audit risk, the scope of the audit would be increased. In establishing the scope of an audit, the auditor must make decisions about the nature, extent, and timing of evidence to be gathered in order to evaluate management's assertions.

Gain insights into the use of competitive positioning and financial understanding in a pitch.

Understand the importance of confidentiality and competitive differentiation in entrepreneurial ventures.

Identify the key financial questions and metrics relevant to startups when presenting to investors.

Recognize the importance of engaging with the audience and allowing for interaction in pitches.

---

Definitions:

Delete

To remove or erase text, files, or other data from a digital device or document.

Insertion Point

The insertion point is a cursor in a graphical user interface that indicates where text, characters, or other data will be inserted within a file or document.

F2

A function key used to rename a selected file or folder in many operating systems and applications, and also serves other functions in different contexts.

Field

A specific area allocated for a particular piece of data in databases or data collection forms, such as name, address, or phone number.