audit - A) Type of Audit Test (Test of control, Year-End...

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A) Type of Audit Test (Test of control, Year-End substantive Test) B) Use of Ratio: 1. Inventory overstated 2. Inventory understated 3. Lager % of Sales compare of last year 4. Smaller % of Sales compare of last year 5. Sales increased as same % of COGS 6. Sales decreased the greater % of COGS 7. Interest Expenses decreased compared to last years 8. Short-term borrowings were refinancing on a Long-Term basis C) Use of Analytic Procedures 1. Account Receivable Turn Over 2. Inventory Turn Over 3. Allow of Debt Allowances 4. Inventory increases as prior year, what will you do? 5. Cost-Sales Ratio retain unchanged year to year, how about Gross Margin ration, increase or decrease prior year? 6. Long-Term Debt increase or decrease year to year? 7. Interest Expenses increase or decrease year to year? 8. Operating Income increase or decrease year to year, then less or more profitable? D) Assertions (type of match with) Audit Procedures 1. Such as Confirmation of valuation 2. Such as shipping document
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This note was uploaded on 06/03/2010 for the course ACC 64 taught by Professor Kwak during the Spring '10 term at DeAnza College.

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audit - A) Type of Audit Test (Test of control, Year-End...

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