L10 Notes_Part_6 - is extensive follow up of all...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Inferring Client Type by Audit Strategy Inferring the Audit Strategy Below are the audit strategies employed on four different audits. Describe what is the most plausible set of circumstances might have led the auditor to structure the audit in this manner. Procedures to obtain Substantive Tests of an understanding Tests of Tests of Analytical Details of Audit of internal control Control Transactions Procedures Balances 1 E E S E S 2 M M M E M 3 M N E M E 4 M M E E E E = Extensive amount of testing. M = Medium amount of testing. S = Small amount of testing. N = No testing.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Determining Audit Strategy - Receivables You are doing the audit of a small mortgage company with extensive receivables from customers. Controls over granting loans, collections and loans outstanding are considered effective, and there
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: is extensive follow up of all outstanding loans weekly. You have recommended a new computer system for the past 2 years, but management believes the cost is too great, given their low profitability. Collections are an ongoing problem because many of the customers have severe financial problems and the housing market precludes refinancing. Because of adverse economic conditions, loans receivable have significantly increased and collections are less than normal. In previous years, you have had relatively few adjusting entries. Recommend an evidence mix for the audit of outstanding loans. E = Extensive amount of testing. M = Medium amount of testing. S = Small amount of testing. N = No testing....
View Full Document

This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

Page1 / 2

L10 Notes_Part_6 - is extensive follow up of all...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online