Inventory: Auditing and Instructor Resource Manual

8542 words 35 pages
Show More
Planning and Performing audit Procedures in the Revenue and Expenditure Cycles an audit Simulation
C A S eS INC LU De D IN T h IS Se CTION

10

10.1 Southeast Shoe Distributor, Inc.
Identification of Tests of Controls for the Revenue Cycle (Sales and Cash Receipts) Identification of Substantive Tests for the Revenue Cycle (Sales and Cash Receipts)

. . . . . . . . . . . . . .

299 309 319 333 347

10.2 Southeast Shoe Distributor, Inc. 10.3 Southeast Shoe Distributor, Inc. 10.4 Southeast Shoe Distributor, Inc. 10.5 Southeast Shoe Distributor, Inc.

. . . . . . . . . . . . . .

. . . . . . . . . . . . . .

Selection of Audit Tests and Risk Assessment for the Revenue Cycle (Sales and Cash Receipts)
. . . . . . . . . . . . …show more content…

This provides an opportunity to highlight the subjective nature of some of these judgments as well as to point out that many audit approaches would be considered reasonable. The suggested approach is amenable to using small cooperative learning groups. For example, students could be asked to individually identify a control activity related to the existence of sales transactions, share it with another student, and then share it with the whole class (called Think-PairShare). It is important that students be randomly selected by the instructor to share their answers with the class to maintain individual student accountability for the learning process. This basic process can continue for the remaining management assertions. A group activity for the “out-of-class” activity would be to have students compare their answers in small groups and then ask them to share their answers with the whole class (called Homework Review). Again, it is important that the instructor randomly select students to share their answers with the class to maintain student accountability. Students can also be asked to complete the “out-of-class” activities in pairs or small groups.

PROFESSIONAL STANDARDS
Relevant professional standards for this assignment are AU Section 319, “Consideration of Internal Control in a Financial Statement Audit,” AU Section 325, “Communication of Internal Control Related Matters Noted in An Audit,” AU

Related

  • Section 5 Internal Control over Financial Reporting
    23611 words | 95 pages

    Internal Control Environment 2. Easy Clean, Co. 155 Evaluation of Internal Control Environment 3. Red Bluff Inn & Café 165 Establishing Effective Internal Control in a Small Business 4. St. James Clothiers 169 Evaluation of Manual and IT-Based Sales Accounting System Risks 5. Collins Harp Enterprises 177 Recommending IT Systems Development Controls 6. Sarbox Scooter, Inc. 185 Scoping and Evaluation Judgments in the Audit of Internal Control over Financial….

    Show More
  • Asher Farms Inc.
    2492 words | 10 pages

    Instructor Resource Manual — Do Not Copy or Redistribute Asher Farms Inc. C a s e 2.4 PROFESSIONAL STANDARDS Relevant professional standards for this assignment are AU Section 310, “Appointment of the Independent Auditor,” AU Section 311, “Planning and Supervision,” AU Section 312, “Audit Risk and Materiality in Conducting an Audit,” AU Section 314, “Understand the Entity and Its Environment and Assessing the Risks of Material Misstatements” and AU Section 316, “Consideration of Fraud in….

    Show More
  • Builtrite - Auditing
    14420 words | 58 pages

    Solutions for the Biltrite Bicycles Inc. Case Module I - Assessment of Inherent Risk 2 Module II – Assessment of Control Risk 16 Module III - Control Test: Sales Processing 28 Module IV - PPS Sampling: Factory Equipment Additions 30 Module V - Accounts Receivable Aging Analysis 34 Module VI - Sales and Purchases Cutoff Tests 41 Module VII - Search for Unrecorded Liabilities 46 Module VIII - Dallas Dollar Bank Reconciliation 48 Module IX- Analysis of Interbank Transfers 51 Module X -….

    Show More
  • Biltrite Corp.
    23490 words | 94 pages

    Although competent, the internal audit staff reports to the corporate controller. This impairs audit independence within the organization and places too much emphasis on financial auditing relative to operational auditing. • Having once been employed by the auditing firm, the corporate controller is familiar with the firm’s auditing strategies and procedures. This knowledge could assist in concealing fraud from the audit team. • Given a manufacturing facility of this magnitude, a separate “plant assets”….

    Show More
  • Nsa Capstone Project
    16275 words | 66 pages

    NETWORK AUTHORITIES: REQUEST FOR PROPOSAL NETWORK IMPLEMENTATION 1. Table of Contents PRELIMINARY SCHEDULE ....................................................................................................3 Staff Training .............................................................................................................5 Teacher Training ........................................................................................................6 INTRODUCTION........................….

    Show More

Popular Essays