Advanced Auditing and Assurance Exam Solution - AC7234, Term 2

This document provides a detailed solution to the Advanced Auditing and Assurance exam (AC7234). The solution addresses key aspects of audit planning, including the evaluation of significant risks of material misstatement through preliminary analytical procedures. It explores audit risks related to specific company practices, such as consignment-based purchases and warranties, and outlines principal audit procedures for the valuation of intangible assets. The solution also comments on matters that should be considered in auditing, particularly concerning the accuracy of financial records, and discusses issues related to modified financial records and their implications. The document further details the steps involved in planning a forensic investigation, ethical considerations, and recommendations for addressing fraud. The solution references relevant accounting standards and provides a comprehensive analysis of the exam questions.