Assignment 3: Audit Risk and Sampling

Assignment 3: Audit Risk and Sampling

Due Week 6 and worth 100 points

In this assignment, you will prepare a two to three (2-3) page report that addresses the requirements specified in the case. Fully address each requirement and include at least two (2) current references to scholarly and/or authoritative sources.

Specifically you will be required to:

1.     Explain the effects on the account of the opening of the first retail store.

2.     Describe how the business change will affect audit risk components.

3.     Determine expected changes to inventory transactions and balances and specify which will be most affected by the business structure change.

4.     Describe the population(s) and recommend a sampling approach for substantive inventory testing.

5.     Use at least two (2) current, quality academic or authoritative sources in this assignment.


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