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Explain the effects on the account of the opening of the first retail store.

Book is available at strayer.edu

• Assignment 3: Audit Risk and Sampling (Chapter 10, page 50)


In this assignment, you will prepare a two to three (2-3) page report that addresses the requirements specified in the case. Fully address each requirement and include at least two (2) current references to scholarly and/or authoritative sources.

Specifically you will be required to:

Explain the effects on the account of the opening of the first retail store.
Describe how the business change will affect audit risk components.
Determine expected changes to inventory transactions and balances and specify which will be most affected by the business structure change.
Describe the population(s) and recommend a sampling approach for substantive inventory testing.
Use at least two (2) current, quality academic or authoritative sources in this assignment. Note: Wikipedia and similar websites do not qualify as quality scholarly and/or authoritative sources. Use the Strayer University Library to conduct your research.

Your assignment must follow these formatting requirements:

Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or SWS format. Check with your professor for any additional instructions.
Include a cover page containing the assignment title, the student’s name, the professor’s name, the course title, and the date. The cover and reference pages are not included in the required page assignment page length.
The specific course learning outcome associated with this assignment is:

Determine the impact of a change in business structure on audit risk, inventory transactions, and balances using a given sampling approach.


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