Reference no: EM132764733

Question: You are auditing the expenditure cycle of a food company and focusing on disbursements and accounts payable related to inventory purchases. The food company and its food suppliers share transactional information through the use of blockchain technology. Company purchase orders, company receipt of inventory, vendor inventory shipments, vendor transportation costs, vendor invoices, company cash disbursements, and vendor cash receipts information are maintained on the blockchain shared ledger.

Answer the following:

A. Management Assertion: Existence or Occurrence - What testing would you perform to verify that the food company's AP balance represents the amount owed to food vendors on the balance sheet?

B. Management Assertion: Completeness - How could the search for unrecorded liabilities change for food inventory AP and purchases of this food company?

C. Describe two control risks that arise from the food company's use of a shared ledger with its food suppliers.

D. Describe two controls that could mitigate these risks mentioned in 2. Above.

E. Describe two skills that auditors should possess in auditing transactions and amounts maintained in a blockchain shared ledger.