Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Angela Walsh is a new staff auditor. On her first three engagements, she was assigned to perform tests of controls for acquisitions and payments and test of details of balances for accounts payable. The approach taken in each audit is briefly described below:
Audit 1 The client is a medium sized company. Extensive tests of controls were performed for acquisitions and payments. Fairly extensive analytical procedures were also performed. The test of details of balances of the year end accounts payable balance were minimal, and no confirmations are sent (confirmations are not required for testing accounts payable).Audit 2 This company is also medium sized. Extensive test of controls were also performed, but after these tests were completed, additional substantive tests of transactions were performed. Extensive tests of the year end accounts payable balance were performed, although no confirmations were sent. Audit 3 Although the auditors gained an understanding of internal control, no tests of controls were performed over acquisitions and payments. However, extensive substantive tests of transactions were performed, and confirmations were sent as part of the extensive testing of year end accounts payable. Although this company was smaller than the first two companies, the total audit time spent testing accounts payable was greater than for the first two audits. Angela is confused by the apparent inconsistency in the audit approach on the three audits, and concludes that the audit approach and amount of audit evidence to collect depends on the audit partner in charge of the engagement.Required:
a. Match each engagement with one of the following descriptions:1. Extensive reliance on controls was planned for this audit engagement, but control risk was increased after tests of controls.2. This audit is likely for a public company, and is also the most efficient audit. 3. This company has ineffective controls, and may also have fraud risks present. b. What other factors likely explain the different approaches to the audit of acquisitions and payments and accounts payable for these three engagements? c. What could Angela's supervisors have done to improve her understanding of the audit strategy for each engagement?
What is the control environment? How does the control environment affect a company's internal controls? What are the negative and positive elements of a control environment?
On July 1, 2007, Gale Sondergaard Company sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer. Sondergaard will receive interest at the prevailing rate for a note of this type. Both..
Compute price and usage variances for direct materials, compute the direct labor rate and labor efficiency variances and compute the fixed overhead spending and volume variances. Intercept the volume variance.
Audit partner is concerned about his lack of knowledge of the industry the company is operating in, state of the company's industry and associated risk factors
Why should an external auditor, whose primary responsibility is to express an opinion concerning the representations in financial statements, suggest improvements to the information system?
Outline the major revisions to the auditing standards and discuss their implications for auditors conducting audits. (Approx 1,000 words essay response)
What is the purpose of engagement planning? What critical information should the auditor consider during engagement planning? How will this information affect the scope of the audit?
Identify the European countries with a public oversight body for auditing and name the country's related body.
Examples of five ethical dilemmas that could arise during the audit process and determinge how you would resolve them.
1.As part of the June 30, 2013, audit of accounts payable of Milner Products Company, the auditor sent 22 confirmations of accounts payable to vendors in the form of requests for statements
1. evaluate the child credit for the subsequent taxpayer. apple and james who file a joint returnhave two dependent
You are required to identify a current controversy relating to Auditors' Independence.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd