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Auditing
Eider equipment leasing limited is in the financing lease business. it uses a service organization to compute lease payment schedules. Eider's customers sign standard equipment leases ranging from 3 to 15 years. The details of the leases are summarized and sent to the service organization to generate the schedules. Hard copy reports from the service organization are delivered to Eider monthly and used by its bookkeeper to generate entries in the company's general ledger system, which is run on a popular accounting software package.
Required
Problem A) Design two or more appropriate audit approaches for verifying leasing revenues for this auditee
Problem B) List factors that would indicate which approach will be most efficient and effective.
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