Evaluating Risk Factors
The risk of material misstatements is of concern in planning the audit of the Anthony's Orchard financial statements for the year ending December 31, 2009. Anthony's Orchard is a publicly traded firm that is on the NASDAQ. Anthony's Orchard has customers in the United States and has growing orchards in California and Washington.
Based on the information presented in the application form linked below, determine whether the factors are likely to increase, decrease, or have no effect on the risk of material misstatement. Do these factors indicate inherent risk or control risk? In the provided fields in the application form, mark your answers as Yes (Y) or No (N).
Your solution is attached. I showed you, in the solution, which category would apply and wrote comments that you ...
This solution evaluates risk factors related to material misstatements. I explain if the factors presented are likely to increase, decrease, or have no effect on the risk of material misstatement and if the factors indicate inherent risk or control risk for Anthony Orchards.