question archive Answer these question from the case study and excel file 1
Answer these question from the case study and excel file 1
Subject:UnrecognizedPrice: Bought3
Answer these question from the case study and excel file 1. Conduct research to (i) find out the PCAOB auditing standard related to the use of analytical procedure during audit; (ii) List the four factors impacting the expected effectiveness and efficiency of analytical procedure; (iii) list at least four requirements in the standard related to developing an expectation and conducting analytical procedures when those procedures are intended to provide substantive evidence. (1 point. Point allocation: 0.2 point for (i); 0.4 point for (ii); 0.4 point for (iii)) 2. Use the external hotel and industry information obtained by the staff person to develop an expectation for Majestic’s 2011 sleeping room revenues. (1.5 points with 0.5 point for each subquestion). a. Are Majestic’s reported sleeping room revenues within your “reasonableness range?” b. If reported sleeping room revenues were inside your “reasonableness range” would your analytical procedure provide sufficient evidence for you to conclude Majestic’s 2011 sleeping room revenues are fairly reported? c. If reported sleeping room revenues were outside your “reasonableness range,” what could explain the difference? 3. Use the internal client records provided in Appendix B to develop an expectation for Majestic’s 2011 sleeping room revenues. (2.5 points, 0.5 point for each sub-question) a. Are Majestic’s reported sleeping room revenues within your “reasonableness range?” b. If reported sleeping room revenues were inside your “reasonableness range” would your analytical procedure provide sufficient evidence for you to conclude Majestic’s 2011 sleeping room revenues are fairly reported? c. What other qualitative considerations would need to be considered before concluding whether additional testing would be warranted? d. What is the advantage of developing an expectation using the disaggregated internal client data in Appendix B to the aggregated external industry data obtained by the staff person? e. What is the disadvantage of developing an expectation using the disaggregated internal client data in Appendix B to the aggregated external industry data obtained by the staff person?
