L4 Notes_Part_4 - indicate which of the two alternatives is...

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P3: Audit Procedures, Types of Evidence and Management Assertions f. The auditor accounts for each of the assets listed in the ledger for the Furniture and Fixtures account. DTB/physical examination/existence of the furniture and fixtures account. g. The auditor sends letters to a sample of the client's customers asking them to confirm the amount indicated as owed. DTB/confirmation/existence and valuation of A/R .
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There is no excuse for the behavior of some auditors who act like "those who come in after the battle to bayonet the wounded"!
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P5: Choosing the Best Audit Procedures George Auditor is choosing the best audit procedures for several of his clients. He notes two alternatives for several situations. For each of the following situations: identify the type of evidence for each of the two alternatives, and
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Unformatted text preview: indicate which of the two alternatives is likely to be best. A. Inspecting inventory items versus calculating inventory turnover Physical Examination/ARP Inspecting inventory items is the more persuasive evidence because it is obtained directly by the auditor, is objective, and is relevant to the auditors objective (existence and valuation). B. Reviewing the clients payments to suppliers after year end to check accounts payable versus obtaining supplier statements as of year end Both types of evidence are examination of documents and records The vendors statements received directly from the vendor would provide strong evidence of the amount owed. Examining clients payment around period end would be useful if the objective was to establish that a clean cutoff took place....
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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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L4 Notes_Part_4 - indicate which of the two alternatives is...

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