Strayer ACC403 week 5 discussions

Minimizing Audit Risk” Please respond to the following:
·
According to the text, auditors have
to make judgments concerning materiality on every audit. Since the auditing
standards give no formal guidance for how to determine materiality, auditors
must rely on their own experience. Determine at least two (2) qualitative
factors that affect the auditor’s judgment. Provide a rationale for your
response.
·
According to the text, auditors rely
on the audit risk formula to determine the types and amount of audit evidence
to collect in order to keep the overall audit risk of engagements to a minimum
or below defined tolerable limits. Suggest an alternative to the audit risk
equation in order to mitigate audit risk. Support your rationale with examples
of the successful use of the alternative strategy.