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Final Review Audit--Simulation Part

Index:

Page 2: Topic 2: Planning
Page 9: Topic 3: Transaction Cycles
Page 18: Topic 4: Evidence and Communications
Page 25: Topic 6: Statistical Sampling
Page 31: Topic 7: Options
Page 39: Topic 8: Other Reports & Services
Page 44: Topic 9: Governmental Auditing


























Topic 2: Planning

Tab 2
Durham CPA is considering audit risk at the financial statement level in planning the audit of DML
Companys financial statements for the year ended December 31 20X4. DML is a privately owned entity
that contracts with outside companies to provide facilities management services for professional offices.

Tab 4
Based on only the information below, indicate whether each of the following factors would most likely
increase, decrease, or have no effect on audit risk. For each of the items in the table below, identify the
effect on audit risk by double-clicking on a shaded cell and selecting the appropriate option from the list
provided.

2

Tab 5

3

Tab 6


4
Tab 7

Tab 8


5
Tab 9













Topic 3: Transaction Cycles
Tab 2
Rae & Joseph CPAs are auditing the financial statements of Janis Inc. a nonpublic entity for the year ended
December 31 20X4. Rae is the engagement supervisor and Kelly is an auditing assistant on the
engagement.
Tab 4

6

Tab 5

Tab 6