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ShatanaBentley-AC410-Auditing-Unit4-Homework - Unit 4...

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Unit 4 Homework Template THIS TEMPLATE IS IN EXCEL AND CANNOT BE UNLOCKED Name Shatana Bentley Evidence 1 Vendor invoices EXTERNAL HIGH PAYABLES 2 Vendor monthly statements EXTERNAL HIGH PAYABLES 3 Sales invoices INTERNAL MODERATE CASH 4 Shipping documents for sales INTERNAL HIGH 5 Bank Statements (received directly from bank) EXTERNAL HIGH CASH 6 Employee payroll time cards INTERNAL LOW 7 Receiving reports for goods received from vendors INTERNAL MODERATE 8 Sales Contracts (executed by both parties) EXTERNAL MODERATE SALES 9 EXTERNAL MODERATE SALES 10 EXTERNAL HIGH SALES 11 Estimated Warranty Schedules INTERNAL MODERATE PAYABLES 12 EXTERNAL MODERATE SALES 13 Credit Rating Reports EXTERNAL HIGH PAYABLES 14 Vendor Invoice (This was duplicated in the text) Situations Existence Rights and Obligations Completeness Valuation and Allocation Presentation & Disclosure 1 A X X 2 2 A X 1 3 A X 1 4 A X X 2 5 A X 1 6 A X X 2 7 A X X 2 8 B X X 2 9 A X 1 10 A X X 2 1 2 3 4 5 b Who owns the documentation, the auditor or the client? (Minimum of 10 words) 1 The auditor will be able to identify which accounts will require special audit attention when the auditor starts reviews said accounts. 2 3 4 d1.1 Is it permissible to provide the client copies of the auditor's previous documentation? (Minimum of 20 words) 1 2 3 Situation 1 The wrong trade discount was used YES YES 2 The client charged sales tax to a tax exempt customer NO YES 3 The client failed to record returned merchandise YES YES 4 The invoice contained a clerical error NO NO 5 The payment was posted to the wrong customers account YES NO 6 The client failed to record a sale YES YES 7 The payment was in transit at the confirmation date YES YES 8 YES YES 9 YES NO END OF TEMPLATE Problem 7-38 (11.7 Points) Important - Although the text calls for you to include the management assertions as part of your answer, I am not requiring them for this problem, therefore they are not included on the template (Select the best choice for the usual source of the evidence when being provided to the auditor) Classification (What is the reliability of the audit evidence being provided?) Reliability (What account or general account category is the evidence likely to support?) Account RECEIVABL ES PAYROLL EXP RECEIVABL ES Purchase Commitment Contracts for inventory purchases (executed by both parties) Lease agreements where the client is the lessor (executed by both parties)
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