Pinnacle

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AUDIT MISSION ANALYSIS PROJECT

Integrated Case Application- Pinnacle Manufacturing

Table of contents

Organizational History

INTEGRATED CASE APPLICATION — PINNACLE MANUFACTURING: PART II

a. Identification of specific considerations from Parts I and II b. Assessment of acceptable audit risk c. Identification inherent risks INTEGRATED CASE APPLICATION — PINNACLE MANUFACTURING: PART III (1) Controls (2) Deficiencies (3) Control risk Assessment

Integrated Case Application- Pinnacle Manufacturing

I. Organizational History

Pinnacle was set up in 1996 in Pithampur, near city of Indore in Madhya Pradesh (INDIA). Over the last several years the company has continuously invested in and expanded its technology partnerships, manufacturing systems, product range and clientele to emerge as India’s largest commercial vehicle, bus seating and Interiors Company.

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INTEGRATED CASE APPLICATION — PINNACLE MANUFACTURING: PART II

a. Identify specific considerations from Parts I and II of the case that affect your assessments of engagement risk and acceptable audit risk. Use each of the three factors in the text to categorize your conclusions:

▪ External users’ reliance on financial statements

▪ Likelihood of financial difficulties

▪ Management integrity

Definitions (from textbook)

Engagement risk is the risk that the auditor or audit firm will suffer harm after the audit is finished, even though the audit report was correct.

When auditors…...

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