This pack of ACC 490 Week 2 DQs shows the solutions to the following problems:
DQ1: What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit?
DQ2: What are the components of the audit risk model? How does the audit risk model affect an audit plan?
DQ3: The third generally accepted standard of audit fieldwork requires that auditors obtain sufficient competent audit evidence to afford a reasonable basis for an opinion regarding the financial statements under examination. In considering what constitutes sufficient competent audit evidence a distinction should be made between underlying accounting data and all corroborating information available to the auditor. What presumptions can be made about the following?
– The relative competence of evidence obtained from external and internal sources.
– The role of internal control with respect to internal evidence produced by a client’s data processing system.
The relative persuasiveness of auditor observation and recalculation evidence compared to external external-internal and internal documentary evidence.