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Unformatted text preview: without credit approval. If they represent sales to internal departments or subsidiaries, do you really need credit approval? Probably not. 10. Decide whether to rely on internal control UDR < TDR where UDR = SDR + allowance for sampling error 11. Document sample results When an control is judged not effective, what options does the auditor have? Expand the sample size; useful if the control was close to being deemed effective at the assessed level of risk Consider tests of alternative controls Revise the assessed control risk upward increase substantive tests of balances for related accounts (a/r, allowance for doubtful accounts) and transactions (sales, bad debt expense ) Consider implications for integrated audit reporting including classification as a material weakness or a significant deficiency...
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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.
- Fall '08