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Unformatted text preview: 7-38 1. Vendor Invoices -External, Highly Reliable 2. Vendor Monthly Statements -External, Highly Reliable 3. Sales Invoices -Internal, Highly Reliable, 4. Shipping Documents -Internal, Moderate Reliable 5. Bank Statements -External, Highly Reliable 6. Employee Time Cards -Internal, Hightly reliable 7. Receiving Reports -Internal, Moderate Reliable 8. Sales Contracts -External, Highly Reliable 9. Purchase Commitment Contracts -External, Moderate Reliable 10. Lease Agreements -Internal, Moderate Reliable 11. Estimated Warranty Schedules -Internal, Low Reliable 12. Purchase Orders -Internal, Highly Reliable 13. Credit Rating Reports -External, Highly Reliable 14. Vendor Invoice Stored on Client Computer -External, Highly Reliable 7-46 The main purposes and functions of audit documentation are: o o o o o o o Support the auditors’ opinion Assist continuing and new team members in planning and performing Serves as a record of matters of continuing interest Assists in supervision and review Demonstrates the accountability of team members Assists internal reviewers, external peer reviewers, PCAOB inspectors, and successor auditors in performing their roles Support the auditors’ compliance with standards 8-36 1. 45 samples 2. 132 samples 3. 25 samples 4. 77 samples 5. 52 samples 2 and 3 are different from 1 because of the number of failures. If only using 5% sampling, it gives a higher sample size number, which may not always be beneficial. 8-41 All misstatements should be noted by an auditor, and if repeated be looked in to. Of t hose listed the most likely ones that should be caught as misstatements are numbers 5, 6, 8, 9. 8-44 The auditor would likely have the company or person in charge correct the known m isstatement. If that is done, then the UML (upper misstatement limit) can be adjusted. In some cases, this simple correct will bring the UML below the tolerable m isstatement level. ...
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- Spring '10