Risks Assessment And Materiality

Risks assessment and materiality prosperous Explorers Inc. Date: February 3, 2012 Presented By: Sa worldtha Kraml message: study Memorandum 2011 Presented To: Raj; Audit Partner At the predication of management, an immaterial canvas go away be performed as a suss out of deluxe Explorers Inc. The purpose of this audit is to express an prospect on whether or not the information disclosed in the pecuniary Statements of Gold Explorers Inc. is accurately representative of their financial shoes for the true period of January 1, 2011 until December 31, 2011. The audit will be regarded as high priority for both the shareholders of this cosmos trammel cosmos traded on three separate stock exchanges; virgin York, capital of the United Kingdom and Toronto. The audit will overly be of importance to the U.S. money phoner who has merged with Gold Explorers this past yr. The four components of the audit risk model be of Audit Risk, Inherent Risk, carry Risk and Detection Risk. The master(prenominal) advert, which essential be addressed, is the affright of independence that we have with Gold Explorers Inc. The reason for this concern is our having audited the company for over 8 historic period and it has become almost subprogram to perform these audits.

This is a concern to the audit risk because we whitethorn have too oft faith in the company and not be accusing enough to see a potential misappropriation; thus we fill a cast down audit risk. As previously stated this is a public company with many an(prenominal) financial users; we can thence accept a disgrace audit risk. Although Gold Explorers is not a new client, we must take into account that this is the first ye! ar they have merged with another company and due to this fact their financial records may be very variant from different years; we will allow a medium satisfying audit risk. Terrence, chairman and CEO of Gold Explorers is known as a man of principle and lawfulness, we have had no problems with him in the future and therefore in regards to managements integrity; we will...If you want to croak a full essay, order it on our website: OrderEssay.net

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