In Part I of the case, you performe

In Part I of the case, you performed preliminary analytical procedures for Pinnacle (pp. 245–247). The purpose of Part II is to identify factors influencing risks and the relationship of risks to audit evidence.

During the planning phase of the audit, you met with Pinnacle’s management team and performed other planning activities. You encounter the following situations that you believe may be relevant to the audit:

1. Your firm has an employee who reads and saves articles about issues that may affect key clients. You read an article in the file titled, “EPA Regulations Encouraging Solar-Powered Engines Postponed?” After reading the article, you realize that the regulations management is relying upon to increase sales of the Solar-Electro division might not go into effect for at least ten years. A second article is titled, “Stick to Diesel Pinnacle!” The article claims that although Pinnacle has proven itself within the diesel engine industry, they lack the knowledge and people necessary to perform well in the solar-powered engine industry.
2. You ask management for a tour of the Solar-Electro facilities. While touring the warehouse, you notice a section of solar-powered engines that do not look like the ones advertised on Pinnacle’s Web site. You ask the warehouse manager when those items were first manufactured. He responds by telling you, “I’m not sure. I’ve been here a year and they were here when I first arrived.”
3. You also observe that new computerized manufacturing equipment has been installed at Solar-Electro. The machines have been stamped with the words, “Product of Welburn Manufacturing, Detroit, Michigan.”
4. During discussions with the Pinnacle controller, you learn that Pinnacle employees did a significant amount of the construction work for a building addition because of employee idle time and to save costs. The controller stated that the work was carefully coordinated with the construction company responsible for the addition.
5. While reading the footnotes of the previous year’s financial statements, you note that one customer, Auto-Electro, accounts for nearly 15% of the company’s accounts receivable balance. You investigate this receivable and learn the customer has not made any payments for several months.
6. During a meeting with the facilities director, you learn that the board of directors has decided to raise a significant amount of debt to finance the construction of a new 287288manufacturing plant for the Solar-Electro division. The company also plans to make a considerable investment in modifications to the property on which the plant will be built.
7. While standing in line at a vending machine, you see a Pinnacle vice president wearing a golf shirt with the words “Todd-Machinery.” You are familiar with the company and noticed some of its repairmen working in the plant earlier. You tell the man you like the shirt and he responds by saying, “Thank you. My wife and I own the company, but we hire people to manage it.”
8. After inquiry of the internal audit team, you realize there is significant turnover in the internal audit department. You conclude the turnover is only present at the higher-level positions.
9. While reviewing Pinnacle’s long-term debt agreements, you identify several restrictive covenants. Two requirements are to keep the current ratio above 2.0 and debt-to-equity below 1.0 at all times.
10. The engagement partner from your CPA firm called today notifying you that Brian Sioux, an industry specialist and senior tax manager from the firm’s Ontario office, will be coming on-site to Pinnacle’s facilities to investigate an ongoing dispute between the Internal Revenue Service and Pinnacle.
11. A member of your CPA firm, who is currently on-site in Detroit at the Welburn division, calls you to see how everything is going while you are visiting Solar-Electro in Texas. During your conversation, he asks if you know anything about the recent intercompany loan from Welburn to Solar-Electro.
a. Review Part I of the case and the situations in Part II and identify information that affects your assessment of acceptable audit risk. Note that only some of the situations in Part II will relate to acceptable audit risk. Classify the information based on the three factors that affect acceptable audit risk.
External users’ reliance on financial statementsLikelihood of financial difficultiesManagement integrity
b. Assess acceptable audit risk as high, medium, or low considering the items you identified in requirement a. (A risky client will be assessed as a low acceptable audit risk.) Justify your response.
c. Identify inherent risks for the audit of Pinnacle using the information from Parts I and II. For each inherent risk, identify the account or accounts that may be affected.

ผลลัพธ์ (ไทย) 1:

In my case, You performed a preliminary analysis procedure for Pinnacle Club (led 245-247) of Part II aims to identify factors that influence risk and correlation of risks, reviewed the evidence was in the process of planning. investigate You met with the management team of Pinnacle Hotel. And perform other activities planned , you find the following events that you believe. May involve checking: 1. Employing can read. And save articles about issues that may affect the important customer you read in the file name, the "Regulations EPA Encouraging Solar Engine promoted? " After reading this article, you know that the administration is relying on regulations to boost sales of the pendant light will not go into effect ten years is the second article. "Stick Pinnacle Diesel," the article claimed. Although Pinnacle has proven itself in the diesel engine industry. They lack knowledge and the necessary people to do good in the solar industry, the engine management 2. Ask the tour of Electro Optical warehouse now. You notice the solar engine, unlike the ad on the website of Pinnacle's warehouse manager, you ask, when the product was first manufactured , he replied that "I'm not sure I've ever year. And they were here when it comes to " 3. You also notice that Has installed new production equipment, computers, solar hijack machines have been stamped with the words "Welburn products produced in Detroit, Michigan" 4. During a conversation with a control pin Pinnacle. You learn that Pinnacle's employees for construction of major buildings, the use of staff time and cost savings that the specified control. Work carefully with the construction company responsible for adding five. While reading the footnotes of the financial year, you know, Electro automated customer account for nearly 15% of the company's accounts receivable balance you determine the debtor. And learn the customer made ​​any payments for several months 6. During a meeting with the director, you learn that the board has decided to increase the amount of debt finance construction of the plant. 287288manufacturing Stoke significant new solar company is also planning to invest a lot of tweaks to build seven. While standing in line at the vending machine. You see Pin, Vice President, who wore golf. "Todd machine," Are you familiar with the company. And observation of the work in the factory earlier you tell someone you like a shirt. And he responds By saying, "Thank you, my wife and I own the company. We hire people to handle it, " 8. After a discussion of the internal audit team. You know there is significant turnover in the department of internal audit summary circulated only in a higher position than ninth. While reviewing the long-term debt agreement Pinnacle Club. You identify several covenants stringent requirements will be higher debt to equity ratio below 1.0 and 2.0 times 10. fiancee from your CPA called today to announce that Brian and industry experts such as. Tax Manager from its offices in Ontario, OH. The hotel is Pinnacle's facilities, examining their arguments to the IRS and the Pinnacle Club 11. A member of your CPA on hotels in Detroit, divided Welburn called to see if everything is going on while you are visiting the solar cameo in Texas during your conversation, he asked you. What about loans between companies from the solar cell to hijack Welburn York. I review the issues and circumstances of the case and in Part II, and information affecting the risk assessment examined the note said. In certain circumstances, Part II is associated with the risk tolerance to determine the types of information that are based on 3 main factors that affect the risk to an acceptable detection of external users need the money. statementsLikelihood of financial difficultiesManagement b. Assessment Audit risk is high, medium or low in the order you specify. demand. (If the risk is assessed as low risk checks accepted) response management c. Identify the risk for congenital validated using data from the pin stars for each of the inherent risks. Specify the account or accounts that may have been affected.

ผลลัพธ์ (ไทย) 2:

In that case you are using a preliminary analysis for Pinnacle (PP. 245-247) The second objective is to identify factors that influence the risk and the relative risk of audit evidence. . During the planning stage of the audit, you met with the management team of Pinnacle and planning activities. So you experience the following scenarios that you believe may be related to the inspection: 1 companies. Your employees read and write articles about issues that may affect the important customer you read in a file named "Regulations EPA encourages Engine Solar scroll?" After reading this article, you realize that management rules are. relies on increased sales of solar power division may not go into effect for a period. At least ten years, the second article is about. "Heavy diesel Pinnacle!" The article claims that, although Pinnacle has proven itself in the diesel engine industry, they lack the knowledge and the people needed to work well in the engine industry of solar energy. 2 , you ask. managed to tour the facilities of solar power while touring the warehouse, you notice the engine, solar energy does not look like the ones advertised on the site Pinnacle's you ask the warehouse manager when those items were. first manufactured they respond by telling you. "I'm not sure I've been here for years and they are here when I first arrived. " 3 It is also observed the production of new computer equipment has been installed solar electric machine has been stamped with the word. "Product of Free Manufacturing in Detroit, Michigan." 4 During discussions with the regulator Pinnacle, you have learned that employees Pinnacle has a significant amount of construction work for buildings also due. Staff idle time and cost- control state that has been carefully coordinated with the construction companies that were responsible for the increase. 5 While reading the footnotes to the financial statements earlier this year, you know. that one client Auto-Electro account for nearly 15% of the Company's account receivable you check the debtors and learn the customer has not paid any money for months. 6 , during a meeting with the director of the facility. The ease with which you learned that the Board has decided to raise a significant amount of debt to finance construction of the plant. 287288manufacturing The new division Solar Power Company also plans to make investments a lot in changing the property on which the plant will be built. 7 while standing in line at the vending machine will be. The vice president of Pinnacle wearing a golf shirt with the word. "Todd -Machinery." You are familiar with and observe some of the repair work in the plant earlier you tell someone that you like the shirt, and he responded by saying. "Thanks to my wife and I owned my company, we hire people to handle it. " 8 after an inquiry of an internal audit that you know are major operators in the Internal Audit Department , you summarize the results are only offered in a higher position on the scale. 9 at the time of inspection. Pinnacle's long-term debt agreement, you define the rules and restrictions are two requirements to provide liquidity ratio above 2.0 and a debt to equity ratio below 1.0 times. 10 Alliance. part of your accounting firm called today to let you know that Brian Su, industry experts and tax managers from high office Ontario company to come on-site facilities of Pinnacle. Michael verification dispute continued between the IRS and the Pinnacle 11 members of your account that is currently in place in Detroit at the front desk, calling you to see. Everything is possible while you are visiting the solar electricity in Texas during your conversation, he asked if you knew anything about the loan during the latest from the car park free solar electricity. Review Part I of the case. and the situation in the second and identifying information that can affect the risk assessment of the checks are accepted , please note that only some of the situations in the second part will involve the examination of risk is acceptable to classified information. Based on the three factors that affect the risk checks accepted. Confidence on the outside. statementsLikelihood financial difficultiesManagement Complete financial information , risk assessment, monitoring has been high, medium or low considering that you specified in requirements (customer risk can be assessed that the risk is acceptable under review.) show. justify your response. The risk identification for monitoring of Pinnacle Data from Part I and II for each risk identified accounts or accounts that may have been affected.

ผลลัพธ์ (ไทย) 3:

In the event that you analyzed the preliminary processes for Pinnacle al (pp. 245 (247) The objective of Part 2 is to identify risk factors and the relationship of risk to examine the evidence in the planning stages. The inspection You have met with the management team, Pinnacle and planning activities. So

you come across the following situation that you believe may be relevant to the audit: one of your employees read and write articles about issues that may affect key customers. You read an article in a file named "EPA regulations promoting solar-powered sled?" After reading this article

, you know, rules management relies on to increase their sales departments, solar electricity may not specifically be at least 10 years, two articles that. titled "Heavy diesel awesome!" the article claimed. Orgasms has proven itself in the diesel engine industry , they lack the knowledge and people need to perform well in a solar-powered industrial engines.
2, you ask management for a tour of the solar power. While touring the warehouse Have you noticed that The engine solar energy is not as advertised on the web site you are asking the warehouse manager when a product was manufactured for the first time , he responds by telling you that "I'm not sure I've been here for years and they are. this When I arrived before "
3 you also noticed the device is manufactured using a new computer was installed solar electro machine stamped with the words "Product of welburn production, Detroit, Mich.,"
4 in between. Discussions with the ultimate controller , you learned that. The climax was an employee of building construction. Furthermore, because the employee did not use the time and cost savings. The controller stated that a carefully coordinated with the company responsible for two.
5 While reading the notes to the financial statements of the prior year. You know the customer first, electric cars, accounting for almost 15% of outstanding accounts receivable and learn you check the customer does not make any money. For several months.
6, during a meeting with the director , you learn that. The Commission has decided to raise a significant amount of debt finance plant construction. 287288manufacturing New electro solar energy company plans to make substantial investments in property, plant modifications will be made.
7 while standing in line at the vending machine. , see the culmination vice president, wearing a golf shirt with the words "Todd machine you are familiar with and observe some of the repairman. Worked in a factory before You tell someone you like his shirt, responded by saying, "Thank you, my wife and I own the company. But we hire someone to manage it, "
8 after an inquiry of the internal audit team , you realize that there is significant turnover in the internal audit department. You are just the turnover in senior positions.
9 while checking the balance of long-term contracts, you specify multiple constraints. Second, the demand for higher current ratio of 2.0 and below 1.0 times.
10 engagement partner from your CPA called to inform you that Brian Su, industry experts and senior managers taxes from Ontario office to the hotel, to the pinnacle of the machine to determine the dispute continues between. Internal Revenue Service and the Pinnacle Club
11 members of the CPA firm of which are in hotels in Detroit, where welburn Division, to call you to see if everything occurs while you are visiting plants solar energy. Texas During your conversation, he asks if you know anything about password recovery is strong from welburn solar power.
. review of the case and the situation in the ii and information affecting the assessment. Monitoring risk tolerance Note that only certain situations in Part 2 involves monitoring the risk acceptable. The classified information according to three factors that affect the risk of check acceptance. The confidence of external users on
statementslikelihood. Financial Financial difficultiesmanagement complete
assessment b determine acceptable risk is high, medium or low considering that you specify in need. (If the risk is assessed as low risk acceptance) Adjust your response.
C. Risk identification for monitoring of Pinnacle using data from part 1 and 2 for each of the inherent risks. Specify the account or accounts that may have been affected.