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Describing an Example of an Audit Procedure

1)Explain the concept of materiality and describe one of the ways the concept of materiality is used in planning and performing the audit.

2)What is audit risk and what is it composed of ?

3)What is the definition of audit evidence ?

4)Identify and describe one of the six factors that influence the reliability of audit evidence.

5)Identify an example of audit procedures and describe what it means

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Hello. I provide the following to assist you. I have provided some resources for you in each of these matters. Some students prefer them, others do not. Therefore, if the sources are not necessary, you may disregard them. I provided responses for you, but then provided resources for you to use should you need a more "elaborate" response. Furthermore, I tried to adhere to your 80+ request.

1)Explain the concept of materiality and describe one of the ways the concept of materiality is used in planning and performing the audit.

The concept of materiality is that in any audit, or any financial transaction for that matter, all material information (important information that are large enough and effective enough to affect an audit), should be disclosed. However, if a matter is trivial, that information should not be disclosed as it is considered unimportant. In an audit for example, an organization may create an income statement. Because an income statement can be so large and detailed, it would be important in an audit for some unimportant information to omitted. "A statement with too much detail could obscure the "larger picture," could be difficult to prepare, and ...

Solution Summary

This solution discusses materiality, audit risk, audit evidence, and audit procedure.

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