Audit Risk Model Write out the audit risk model in the box below.

An auditor is assessing the level of inherent risk in an audit engagement and finds that it is higher than expected. Which of the following results is most likely?

Which of the following cash transfers is most likely to indicate the presence of kiting in the 2024 financial statements?   BANK TRANSFER SCHEDULE   Disbursement from Bank #1 Receipt in Bank #2   Recorded in books Paid by bank Recorded in books Received by bank a) 12/31/2024 1/5/2025 1/5/2025 1/4/2025 b) 12/31/2024 1/5/2025 12/31/2024 1/4/2025 c) 1/4/2025 1/7/2025 1/4/2025 12/31/2024 d) 1/5/2025 1/5/2025 12/31/2024 1/4/2025  

(Please use the bank reconciliation information above as a reference for this question.) What is the total amount of deposits in transit as of October 31st?

Types of Audits Determine what type of audit is described in each of the following scenarios. Answer options may be used more than once or not at all.

As part of the current audit engagement, the auditor reviews equipment purchases and dispositions made by the client fifteen days before and fifteen days after year-end. This procedure would be used to test which of the following assertions?

Which of the following is an effect of the Sarbanes-Oxley Act of 2002?

Kar, CPA, is a staff auditor participating in the audit engagement of Fort, Inc. Which of the following circumstances impairs Kar’s independence?

In pursuing a CPA firm’s quality control objectives, a CPA firm may maintain records indicating which partners or employees of the CPA firm were previously employed by the CPA firm’s clients. Which quality control element is this procedure most likely to satisfy?

Essay Question Please answer the following statement in the space provided. You should answer this in 1-2 paragraphs. Describe business risk, information risk, how they relate to each other, and how they collectively provide a need for audit and assurance services.