Indicate Whether You Agree or Disagree with the Following Statements

question 38

Essay

Indicate whether you agree or disagree with the following statements and explain your reasoning.
a) Roxanne Deboer, the in-charge auditor, was explaining to her junior auditors why she was setting inherent risk high. "It is appropriate to set higher inherent risk for this company as our client is in an industry that is very competitive."
b) In selecting an appropriate materiality base, an auditor can choose an item from the balance sheet or income statement.
c) Tyler Rappaport has mentioned to his staff auditors that audit risk is based on factors that relate to the entity, while materiality is based on the user needs. As a result, materiality and audit risk are two concepts that need to be considered separately when considering material misstatements.
d) Paloma Schenker has determined control risk at a biochem company to be high. She plans to use a combined audit strategy.

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Definitions:

HIV and AIDS

Human Immunodeficiency Virus is a virus that can lead to Acquired Immunodeficiency Syndrome, a condition where the immune system fails to fight off infections.

Cyberstalking

The use of the internet, email, or other electronic communications to stalk, harass, or intimidate another person.

Internet

A global network providing a variety of information and communication facilities, consisting of interconnected networks using standardized communication protocols.

Mental Health

A state of well-being in which an individual realizes their own abilities, can cope with the normal stresses of life, can work productively, and is able to make contributions to their community.