ss risk and the audit's preliminary analytical procedures? c) When preparing an audit engagement, there are four key areas to consider, each with its own set of sub-areas. Please indicate the four primary regions as well as the re

ss risk and the audit's preliminary analytical procedures? c) When preparing an audit engagement, there are four key areas to consider, each with its own set of sub-areas. Please indicate the four primary regions as well as the re

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle

Section: Chapter Questions

Problem 23MCQ

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Question

When conducting an audit, business risk must be considered.
a) Define business risk in the context of an audit and outline various potential sources of risk.
b) What is the relationship between business risk and the audit's preliminary analytical procedures?
c) When preparing an audit engagement, there are four key areas to consider, each with its own set of sub-areas. Please indicate the four primary regions as well as the relevant sub-parts.

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