Exam 2 Review Outlin - Agenda Announcements(5m Midterm Exam...

Agenda

Announcements (5m)

Midterm Exam Review (15m)

Grouptalk: Loblaws (45m)

Jon’s Loblaw Summary (15m)

Midterm Exam #2
Review Session
Jonathan Grenier
ACCY 453
Spring 2011

11/14/11
SSA / Triangulation in Action
(Peecher et al. Example)

Consider a hypothetical company that harvests, treats,
and bottles natural spring water.

The company is in growth mode and, unfortunately, has
not had the time to sufficiently train the new employees
to test for impurities such as Pechlorate.

How would this process risk affect the auditing of
accounts receivable and inventory?

Would an auditor using a non-SSA approach identified this risk?
 How reliable are the following forms of EBS evidence:

A/R confirmations received directly from customers? Hint: Assume the customers don’t know the
water is tainted.

Auditor inspection of cases of bottle water in the company’s warehouse?

Exam Format
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14 Multiple Choice Questions

1 Audit Risk Model Problem

10 Short Answer Questions

Exam Coverage