Strayer University Performing Analytical Procedures & Audit Risk Discussion

Understanding the Client and Performing Analytical Procedures

1. Address the overall understanding of the retail and wholesale industries and identified areas that impact financial reporting.
2. Analyze Cloud 9’s financial position and its business risks. Include ratios supporting the business analysis.
3. Identify areas requiring special emphasis during the audit and potential problem areas.
4. Address materiality in your response.

Audit Risk and Sampling

1. Explain the effects on the account of the opening of the first retail store.
2. Describe how the business change will affect audit risk components.
3. Determine expected changes to inventory transactions and balances and specify which will be most affected by the business structure change.
4. Describe the population(s) and recommend a sampling approach for substantive inventory testing.

The assignment will be checked for plagiarism!