Question 2Evaluate Garcia and Foster’s documentation of their understanding of the client’s environment (workpaper B.2.1) Describe any problems you find and provide suggestions for improvement. This q

Question 2
Evaluate Garcia and Foster’s documentation of their understanding of the client’s environment (workpaper B.2.1) Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan.
Review Garcia and Foster’s calculations of materiality thresholds for the 20X2 audit (workpaper B.2.1) Determine if the auditors correctly applied the materiality concept in their risk assessment procedures. Describe any problems you find and provide suggestions for improvement.
Evaluate the preliminary analytical procedures completed by Garcia and Foster, CPAs (workpapers B.3.1 to B.3.3.) This question relates to step 2 of the Garcia and Foster Audit Plan.
a. Determine if the analysis of account fluctuations were appropriately performed and completed. (workpapers B.3.1 and B.3.2). Review the explanations of account fluctuations provided by the auditors. Describe any problems you identify.
b. Determine if the ratio analysis (workpaper B.3.3) was appropriately performed and completed. Review the explanations of ratio fluctuations provided by the auditors. Describe any problems you identify.







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