Assessing Materiality and Risk Simulation
Resources: Assessing Materiality and Risk located on the Week Two Materials page
Complete the simulation and prepare a 350-word total (not per question) response to the following questions:
· Why do certain accounts have to be audited 100%?
· Why is materiality allocated only to those accounts that are sampled?
· Is any component of audit risk within the control of the auditor? Explain.
· How are the three risks that make up audit risk interrelated?
In the attached