Audit Risk and Sampling
Prepare a two to three (2-3) page report that addresses the requirements specified in the case. Fully
address each requirement and include at least two (2) current references to scholarly and/or authoritative
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Specifically you will be required to:
Explain the effects on the account of the opening of the first retail store.
Describe how the business change will affect audit risk components.
Determine expected changes to inventory transactions and balances and specify which will be most
affected by the business structure change.
Describe the population(s) and recommend a sampling approach for substantive inventory testing.
Sample Solution
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