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Resources: Assessing Materiality
and Risk located on the Week Two Materials page
Complete the simulation
and prepare a 350-word total (not per question) response to the following
questions:
Why do certain accounts have to be audited 100%?
Why is materiality allocated only to those accounts that are sampled?
Is any component of audit risk within the control of the auditor? Explain.
How are the three risks that make up audit risk interrelated?
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