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BBUS 411 Bothell Accounting Auditing

BBUS 411 Bothell Accounting Auditing

BBUS 411 Bothell Accounting Auditing

You have been hired (the name of the firm is your last name, LLP) to provide additional assurance over the potential world record event discussed above. You are an auditing firm of just one person. You have limited bandwidth, but you want this engagement to help build your business. To make it even more challenging, you only have 12 days before the game is played to come up with a solution.

1)Considering only what you read above, make an initial judgment of whether the inherent risk of misstatement of the number of Santas attending the game is relatively low, medium, or high. Explain the reasoning behind your assessment, discussing the sources of inherent risk you believe exist.

Remember – you are the one responsible for giving an opinion on the final count.

2)Now consider the controls that are, or should be, present at the event. Think about which specific controls, either mentioned explicitly above or not, that you can assume to exist based on common sense knowledge of how professional basketball game (or any major event) operations should work. Discuss controls that you would assume exist in addition to those specifically mentioned in the website posting.

Note> The controls you may recommend need to be in the spirit of reasonableness. No top-secret homing-pigeon solution who use laser beams on their heads to scan bar codes pinned on Santa hats type of solutions. Although I wouldn’t mind seeing that in a movie sometime.

3)Assuming these controls are in place and functioning, how likely would they reduce the inherent risks you identified in question (1) above? Explain your reasoning in a short paragraph. (hint: this is a trick question. Think through your answer!!)

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