Extra Credit What is one qualitative factor that could make a quantitatively immaterial transaction material? (3 points possible).

(Please use the bank reconciliation information above as a reference for this question.) After reconciling, what amount should Wilson have recorded as cash on the book as of October 31st?

Audit Evidence For each audit procedure below:a)    Determine which type of evidence the auditor gatheredb)    Determine what management assertion is tested by the evidence described  Audit Procedure Evidence Assertion Question operating personnel about the possibility of obsolete or slow-moving inventory. Send letters directly to suppliers for information about inventory held by the client that is on consignment. Select a sample of quantities of inventory in the factory warehouse and trace each item to the inventory count sheet to determine if it has been included. Tour the company’s production facility and find a selection of items from the fixed asset register in the facility. Develop an expectation for plant electricity expense based on number of machines and average machine hours per work day. Compare your expectation to the recorded electricity expense to ensure they client has recorded enough expense. Trace a transaction from the sales journal to the general ledger. Watch a billing specialist match a purchase order, sales order, shipping records before creating an invoice.

(Please use the bank reconciliation information above as a reference for this question.) What amount should be listed on the October reconciliation as “Ending balance per the bank?” (Hint: Don’t make this one more complicated than it is.)

The ultimate purpose of understanding the entity and its environment and assessing inherent risk and control risk is to contribute to the auditor’s assessment of the risk that:

Before accepting an audit engagement, an auditor should make specific inquiries of the predecessor auditor regarding the predecessor’s

Audit Risk Model Relationships For each of the following changes in a component of the audit risk model, determine how the other components of the audit risk model would need to be changed (Increase, Decrease, No change). Initial Change Detection Risk Audit Risk Evidence The audit team determines that inherent risk needs to be increased due to the client having new, complex financial instruments. The audit team reduces their control risk assessment due to the client strengthening their internal audit team from the prior year.     Your client underwent an IPO during the year under audit and is now listed on a public stock exchange.

An auditor uses the assessed level of control risk to:

An auditor is assessing the level of inherent risk in an audit engagement and finds that it is higher than expected. Which of the following results is most likely?

In planning the audit engagement, the auditor should consider each of the following except: