L10 Notes_Part_7 - Determining Audit Strategy - Inventory...

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Determining Audit Strategy - Procurement This is the first year of an audit of a medium-sized company that is considering selling its business because of severe underfinancing. A review of the procurement process indicates that controls over cash disbursements are excellent, but controls over acquisitions cannot be considered effective. The client lacks receiving reports and a policy as to the proper timing to record acquisitions. When you review the general ledger, you observe that there are many large adjusting entries to correct accounts payable. i. For this audit, recommend an evidence mix for the five types of tests for the audit of the procurement process and accounts payable.
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Unformatted text preview: Determining Audit Strategy - Inventory The client has inventory at approximately 50 locations in a three-state region. The inventory is difficult to count and can be observed only by traveling by automobile. The internal controls over acquisitions, cash disbursements, and perpetual records are considered effective. This is the fifth year that you have done the audit, and audit results in past years have always been excellent. The client is in excellent financial condition and is privately held. i. For this audit, recommend an evidence mix for the five types of tests for the audit of inventory and cost of goods sold....
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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.

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L10 Notes_Part_7 - Determining Audit Strategy - Inventory...

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