Exam 5: Audit Responsibilities and Objectives

The audit process has three categories of audit phases: risk assessment, risk response, and reporting. Which of the following are part of the risk assessment process?

You have been assigned as the in-charge-auditor for a new client, Beltair House. Beltair House is a non-profit charitable organization that operates women's shelter. In the past, the organization had been almost fully funded by the provincial government. However, due to recent government budget cuts, Beltair now has to raise operating funds from public donations. Because of financial constraints, there is now only one full-time manager, Joan Ng. Joan has the help of several volunteers. The shelter residents also help out with the chores and with maintenance and cleaning. Ng has been able to arrange for a local food bank to provide a large portion of the food required for meals. Door-to-door canvassers have been able to raise money to keep the House going, but Ng is concerned that this will change. Required: Identify issues that affect the risk of this audit engagement that you will need to consider.

Where the auditor has decided to rely upon internal controls, he or she will then

Management assertions are

A financial statement audit typically consists of three sections. Identify the three sections and discuss the major activities performed by the auditor in each section.

In comparing management fraud with employee fraud, the auditor's risk of failing to discover the fraud is greater for

Radio Supplies Limited sells parts and components to organizations that repair radios and other forms of audio equipment. It has many parts on its inventory listing at cost that were purchased up to fifteen years ago. Some of these parts have not seen any movement in the last ten years. The general balance-related audit objective affected by this activity is