ACC491 Week 3 Team Assignment Assessing Materiality and Risk Simulation

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?