Reference no: EM132660598

Problem 1: What is the difference between a predominantly controls approach versus a predominantly substantive approach to an audit. In what circumstance is each approach appropriate?

Problem 2: Bill Zander has noted a higher volume of sales transactions in the last quarter of the year as a reason for assessing inherent risk for the assertions of completeness and cut- off for sales as high. Why would higher volumes of sales transactions worry Bill Zander?

Problem 3: In the flowcharts that are presented as documentation of the auditor's understanding of the revenue cycle, several documents are referred to. Provide a one sentence description of the following documents;

1. Customer order
2. Sales invoice
3. Bill of lading
4. Customer statement
5. Cheque (check)
6. Deposit slip