Group 6- - Group 6 Kyle Gring Tim Vis Justin Bruin Group 6-...

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Group 6 Kyle Gring Tim Vis Justin Bruin Group 6- Discussion Question Chapter 10 1. Consider the following audit objectives: (1) determine whether sales billed to customers have shipped and (2) determine whether shipments to customers have been billed. Answer the following questions. a. What is the difference between the two audit objectives? i. Then determining whether sales billed to customers have been shipped the auditor is checking to see if the processed transaction is valid. When determining whether shipments to customers have been billed the auditor is checking to see if the transaction has been completed. b. What audit procedure would you perform to achieve each audit objective? Be specific. i. For the first scenario I would vouch a sample of sales invoices to corresponding shipping documents to verify that the shipments occurred. ii. For the second scenario I would trace the shipping documents to verify that an invoice had been created and sent to the customer. c. Why is it important that for each audit objective, you select the proper document as the starting point for the audit test and match that document with the other document?
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Group 6 Kyle Gring Tim Vis Justin Bruin i. It is important because we are testing two different reasons. In the first scenario we wanted to find out if the invoice that was sent to the customer was valid so we
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This note was uploaded on 03/29/2011 for the course SPA 335 taught by Professor Laurafox during the Winter '11 term at Grand Valley State University.

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Group 6- - Group 6 Kyle Gring Tim Vis Justin Bruin Group 6-...

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