Q1. Discuss the inherent risk assessment of the following items and explain why the auditor asses these inherent risks as high or low:

  • Inherent Risk Assessment – Prepaid Expenses
  • Inherent Risk Assessment – Intangible Assets

Q2. As an auditor of manufacturing company in KSA, explain what the auditor should do during the observation of the physical inventory count.

Q3. Discuss the theories of ethical behavior.

Sample Solution