For each of the following factors consider the effect on sample size:

HW 1

For each of the following factors consider the effect on sample size:

Increase, decrease, no effect

Increase in inherent risk assertion	increase
Increase in control risk assessment after the evaluation of design and implementation of controls	idecreade
Increase in use of other substantive procedures aimed at the same assertion (CEAVOP)	decrease
increase in tolerable misstatement	No effect
Increase in expected error	increase
Stratification of population	decrease
Increase in number of sampling units in population	no effect

HW 2

You are auditing Inventory of the company, selling chemicals used in metallurgy.

You have already tested A of cost and management have told you that inventory is correctly valued at lower of cost or

net realisable value.

Task:

1. define what is net realisable value

2.state and explain what procedures you should perform to ensure the V of inventory is appropriate

1.

2. 1)list of prices (to estimate the proceeds from sales)

2)identify additional costs such as marketing and distributing

HW 3

You are auditing Accounts payables (AP) of the same company (HW2).

Assume the AP are considered as significant account. Inherent and Control risks we assessed as l ow.

Task:

1. state applicable assertions (CEAVOP)

2.draft a list of audit procedures, stating the method of sampling (if required) and applicable assertions (CEAVOP) 1. CEAP 2. 1) Lead Sheet (P) 2)Reconciliation (EA) statistic sampling 3)Cut off (CE)

.

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