acct612 week 4 discussion latest 2016 august

Week 4 discussion

Audit Documentation

How much information should go into the documentation. Based on your understanding of the issues in this section, do you think the auditor should include more material than necessary just to protect him/herself? What are the pros and cons of such a policy?

Audit Evidence

In this chapter, different types of evidence are discussed. If outside evidence is more reliable than evidence from the company, should the auditor plan to obtain only outside evidence to get the most reliable results? Why or why not?

Understanding the Client's Business

The book mentions that it is necessary for the auditor to understand the client's business. Why is that the case? How does classifying the client into a safe or risky category affect the audit? Do you think auditors should still accept clients in high risk industries? If yes, why? If not, who would audit them?

Materiality

The auditing profession has struggled with materiality for a long time. Do you think the auditor is better off if a specific percentage for materiality is specified in auditing standards? Or is it better left to the auditor's judgment? What are the pros and cons of either policy on auditors, users, and the client?