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I need the answers for these questions from the Alpine Cupcakes, Inc.: Risk Assessment Module


Review Garcia and Foster’s calculations of materiality thresholds for the 20×2 Audit (workpaper B2.1) Determine if the auditors correctly applied the materiality concept in their risk assessment procedures. Describe any problems you find and provide suggestions for improvement. This question relates to Step 2 of the Garcia and Foster Audit Plan.

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Evaluate other aspects of the Audit risk assessment memo (workpaper B.2.1). In particular, review the auditor’s application of the audit risk model and brainstorming processes. Describe any problems you find and provide suggestions for improvement. Identify and document any additional problems you discover with the memo. This question relates to Step 3 of the Garcia and Foster Audit Plan.


Prepare a memo to document your understanding of Alpine Cupcakes, Inc.’s environment and provide your assessment of Garcia and Foster’s audit risk. Describe the specific risks for Alpine Cupcakes, Inc., explain why you believe these factors relate to the Alpine Cupcakes audit, and identify which specific accounts are likely to be affected by these risks. Describe how the audit teams should address the risk identified. For example, the background information mentions that sugar prices may rise. What risks would this present to Alpine Cupcakes? Which accounts would be affected by this risk? How would the audit team address these risks in the audit plan?

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