Assertions (to consider the different types of misstatements that can occur): Balance sheet: Completeness, Rights and obligation, valuation and allocation, existence I/S: Occurrence, cut-off, accuracy, classification, completeness. Presentation and disclosure: Accuracy, classification, completeness, occurrence, rights and obligation, understandibility, valuation and allocation. Audit Risk Model: IR X CR X DR= AR * To make DR low, materiality has to be low too. *CR= design and operating effectiveness…
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