Financial Statement Audit for Disney

 Q1: Develop the ARM. Set your audit risk (AR) and assess the risk of material misstatement (IR x CR) and determine detection risk (DR). Your assessments should be informed based on your strategic and process analyses. For CR, review prior 404 opinions in their 10-K. Justify how and why you determined each risk. Q2: Calculate overall materiality using your client’s most recent financial statements. Justify your approach for calculating materiality and show the calculations. Q3: Justify two significant accounts to test – one from the balance sheet and one from the income statement.
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