week 6 paper - Audit Program Design III Audit Program...

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Audit Program Design III Audit Program Design III Randi Padavano ACC 546 Cecil Lucy November 7, 2011
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Audit Program Design III Introduction When performing an audit of the warehousing cash cycle the main goal is to test the process and operations. To design a sufficient audit the transactions within the cycle must be reviewed. The auditor must have an understanding of the business or entity and the environment of the business, which would include the internal controls. If an auditor does not have an understanding of the entity then that auditor cannot establish materiality or design audit procedures that will help Apollo Shoes expand and grow. Prior to the audit of the inventory and warehousing cash cycles, an auditor must prepare the audit plan and program for Apollo Shoes. The plan that the auditor must develop should reduce risk for the inventory and warehousing cash cycle. This plan must include timing, description of the nature, and the extent of the risk assessment procedures. When the auditor develops the audit plan and procedures, the plan must determine if the financial statements of the business/company are in accordance with the Generally Accepted Accounting Principles. Audit risk, in relation to account balances, transactions, and financial statements, should be taken into consideration when developing the procedures. An auditor must develop an audit procedure that includes test of controls, substantive tests of transactions and analytical procedures with sufficient evidence. There must be adequate evidence to support his or her audit opinion. Not only must there be sufficient evidence, but the
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This note was uploaded on 12/15/2011 for the course ACC ACC taught by Professor Mari during the Fall '10 term at University of Phoenix.

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week 6 paper - Audit Program Design III Audit Program...

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