AC410-01_Unit 7_Project_Marjorie Bowden

AC410-01_Unit 7_Project_Marjorie Bowden - personnel who...

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AC410-01 Unit 7 Project Marjorie Bowden 12-46 1. Transactions over $10,000 must be approved by a credit manager for several reasons. The most obvious reason is that this is quite a large transaction, and not just anyone should be able to make a transaction this large. If this control is not implemented correctly, there could be a lot of large transactions that are no good, resulting in losses for the company. An auditor would want to do an inquiry to confirm and talk with personnel who perform the control about the procedures and processes. 2. This could lead to misstatements as sales managers may or may not document what they have approved, which could cause problems on financial statements. In this case, the auditor may want to observe the personnel performing the actions. 3. By pre numbering the shipping documents, there is room for error in what actually happens. Again, the auditor would want to do an inquiry to confirm and talk with
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Unformatted text preview: personnel who perform the control about the procedures and processes. 4. This could lead to misstatements as the customer service reps may not do exactly what is expected of them, which could cause problems on financial statements. In this case, the auditor may want to observe the personnel performing the actions. 5. Similar to #3, there is room for error or misstatement in financials. Therefore, the auditor would want to do an inquiry to confirm and talk with personnel who perform the control about the procedures and processes. 6. Based on the policy, the company could be overcharging customers on freight charges which will lead to misstatements on financials. The auditor would want to do an inquiry to confirm and talk with personnel who perform the control about the procedures and processes. 13-33 1. Substantive test 2. Controls test 3. Both 4. Both 5. Both 6. Substantive test 7. Both...
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This note was uploaded on 08/23/2011 for the course ACC 302 taught by Professor Peoples during the Spring '11 term at Kaplan University.

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