Audit Procedure - examines whether or not the major...

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Audit Procedure Assertion and related specific objective being met Type of evidence Quality of audit evidence and explanation a) Have the client’s outside law firm send a letter directly to the auditor providing a description of any differences between the lawyer’s assessment of litigation and that of the client. Accuracy and Completeness- All existing litigation is accurate and recorded. Confirmation Confirmation is reliable evidence in regards to litigations assessment, thus making it very sufficient to support the objective. b) Tour the plant to determine that a major equipment acquisition was received and is in working condition. Existence- All recorded major equipment acquisition exists at the B/S date. Inspection The quality of evidence is high because touring the plant
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Unformatted text preview: examines whether or not the major equipment exist. c) Auditors recalculatio n of bond interest and amortizatio n expense Accuracy- Amount of bond interest and amortization expense is correctly recorded. Recalculation The evidence is highly reliable because it meets the objective of accuracy. d) Review all significant past-due accounts Valuation and Allocation- Allowance for Inquiry Inquiring with the client’s personnel may be associated receivable with the credit manager to determine whether the client’s allowance for doubtful accounts is adequate. doubtful accounts must be adequate/appropriate and any valuation adjustments are recorded. with some bias, hence inquiring more than one person is more effective, therefore this evidence has a low quality....
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Audit Procedure - examines whether or not the major...

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