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ACC 546 Individual Assignment Case 5.6 Sarbox Scooter, Inc.
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ACC 546 Individual Assignment Case 5.6 Sarbox Scooter, Inc.

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Part A 1. According to AS5: a) What should the auditor consider when determining whether an account should be considered significant? b) What qualitative factors might cause an account that is otherwise relatively small quantitatively to be considered significant? c) What qualitative factors might cause an account that is greater than materiality to be considered not significant? 2. Auditing standards require the identification and testing of entity-level controls. What are examples of entity-level controls? What are the auditor’s responsibilities with respect to evaluating and testing a client’s period-end financial reporting process? Part B 1. What are the definitions of a control deficiency, significant deficiency, and material weakness as contained in AS5? Which, if any, of these deficiency categories must the external auditor include in the audit report?

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