Assignment:
Holmes Institute Memo
Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), wants you to combine and discuss the following issues into a single coherent 1½ page training memo for new audit assistants:
1) Audit risk is a key consideration and guide to planning an audit - explain why?
2) List the key components of the Audit Risk Model (ARM) and discuss how they interact?
3) How can well-structured or judicious statistical sampling cost-effectively assist with estimating the components of the Audit Risk Model and/or resolve an unsatisfactory outcome of that model and A Full Service Creative Accounting
4) Discuss the key strengths of and key differences between Firm random sampling, haphazard sampling, and judgement Loopholes Located Books Juggled Taxes Evaded sampling and how those differences might affect the Funds Diverted Money Laundered Shortages Hidden discussion in part 3 (above). Pensions Plundered Credit Denied Parking Validated Bankruptcies our Specialty!
This memo is to be answered in groups of 3-6 students, where each group will submit one report with the names and student numbers of all group members in the heading.