“Minimizing Audit Risk” Please respond to the following:
According to your textbook, auditors have to make judgments concerning materiality on every audit. Since the auditing standards give no formal guidance for how to determine materiality, auditors must rely on their own experience. Determine at least three (3) qualitative factors that affect the auditor’s judgment. Provide a rationale for your response.
“Internal Controls and Receivables” Please respond to the following:
Assess the external and internal factors that influence credit policy and decision making within a company that extends credit to its customer when providing a good or service on account. Next, indicate which factor you believe is most significant in today’s business environment. Provide support for your rationale.