September 17 in-class assignment stephanie herzog PDF

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This document contains the September 17 assignment. I received an A....

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ACCT:4100 September 17, 2020 In-class Assignment Name: Stephanie Herzog Selected exercises from 4-27 in the textbook For each item, select the component of audit risk (inherent risk, control risk, detection risk) that is most directly illustrated. Explanations are not necessary. 1. An audit client fails to discover employee fraud on a timely basis because bank accounts are not reconciled monthly Control Risk 2. Cash is more susceptible to theft than an inventory of coal Inherit Risk 3. Confirmation of receivables by an auditor fails to detect a material misstatement Detection Risk 4. Disbursements have occurred without proper approval Control Risk 5. There is inadequate separation of duties in the client’s reporting process. Control Risk 6. A necessary substantive audit procedure is omitted by the auditor. Detection Risk 7. The client is very close to violating debt covenants. Inherit Risk 8. Technological developments make a major product obsolete. Inherit Risk...