Gloria Deal's Auditing Unit 4 Project

Gloria Deal's Auditing Unit 4 Project - Unit 4 Project Here...

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Unit 4 Project Here are some tips for the Unit 4 Project. Hopefully these will provide direction for your responses and lead you out of some common pitfalls I see. Remember to do your own work! See the “Citing Sources/Plagiarism” announcement for more information. I’m looking for your thoughts more than how well you can cite others’ work! Please number your answers the same way they are numbered in the book so that I can easily identify your answers to each part. Neatness and organization are appreciated! 7-38 It might help to set up a table for this problem: Evidence Internal or External Reliability Level (a)Account Balance & (b) Assertion 1. Vendor Invoice External High A. AP/Business Document B. Existence/Occurrence 2. Vendor Monthly Statements External High A. AP/ Business Document B. Existence/Occurrence 3. Sales Invoices Internal Moderate A. Sales/Business Document B. Occurrence and Completeness 4. Shipping Documents for Sales Internal High A. AR/Planning and Control B. Existence/Occurrence 5. Bank Statements External Low A. Cash/Accounting B. Completeness 6. Employee Payroll Time Card Internal Low A. Liab./Accounting B. Existence, Rights/Obligation, and Allocation 7.Receiving Reports for Goods Received from Vendors Internal High A. AP, Liab./Business B. Occurrence and Completeness 8. Sales Contracts External High A. Sales/Legal B. Obligations 9. Purchase Commitment Contract External High A. Liab./Business B. Obligations 10. Lease Agreements Internal Moderate A. Liab./Legal B. Obligations
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11. Estimated Warranty Schedules Internal High A. Notes/Accounting B. Presentation/Disclosure 12. Purchase Order Stored on Client Computer and Received Electronically Internal High A. Liab./Business B. Obligations 13. Credit Rating Report External High A. Footnotes/General Business Information B. Presentation/Disclosure 14. Vendor Invoice Stored on Client Computer and Received Electronically External High A. Liab./Business B. Existence, Obligation, and Completeness 7-44 This is one of the harder ones for me to grade, so please help me out! Part A is to list the assertion being tested (again, see page 307). Part B is to choose which of the testing methods is the most persuasive (reliable). I’m filling those in for you below for each of the 10 scenarios (after shortening them quite a bit – please read the full scenarios!). Please HIGHLIGHT the one that you think is the most persuasive. In the third column, explain why you made that choice. Assertion Tested Most persuasive evidence (Highlight ONE of the choices for each scenario) Why did you choose that particular method? (Why is it more reliable than the other choice(s)? 1. Valuation/Allocation Confirm A/R with businesses Because it is a document straight from the business and the auditor should confirm with customers and make sure they agree with the amount owed. Confirm receivables with
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This note was uploaded on 08/02/2011 for the course MGMT 425 taught by Professor Brown/lexner during the Spring '11 term at Kaplan University.

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Gloria Deal's Auditing Unit 4 Project - Unit 4 Project Here...

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