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Question: You are provided with a series of audit procedures as follows:
a) Test the quantity times price on a sample of sales invoices.
b) Compare the current year's provision for warranty expenses against that of the prior year.
c) Select a sample of purchase invoices and vouch to goods received notes to confirm goods received.
d) Identify assets pledged as security for accounts payable by reviewing minutes and other documents.
Required: For each audit procedure: state the management assertion tested by the procedure and indicate what specific type of audit procedure is described in each scenario (e.g. observation or inquiry of management).
Discuss article about Price Waterhouse Coopers (PWC) and association with the worst accounting fraud in India related to its audit of Satyam Computer Services
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