BU547 Lecture Notes - Lecture 4: Audit Risk, Sackville, New Brunswick
Document Summary
7-17 you are the auditor in charge of the audit of the municipality of sackville, new brunswick. The municipality has a budget of about million and has had a balanced budget for the last three years. There are about 10 people in the accounting office and the rest of the employees are operational, dealing with supervision of roadwork, garbage collection, and similar matters. Many services are outsourced, minimizing the need for employees. The municipality has a chief executive officer and a controller and reports to the council of elected representatives. For each of the following situations, state a preliminary conclusion for audit risk, inherent risk, control risk, and detection risk. State any assumptions that are necessary for you to reach your conclusions: this is the first year that you have been auditing sackville. There has been extensive turnover after the recent election.
