ShatanaBentley-AC410-Auditing-Unit6-Homework

ShatanaBentley-AC410 - AC 410 Unit 6 Homework Your Name Shatana Bentley(Use this template to answer your Unit 6 homework assignment This template

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AC 410 Unit 6 Homework Your Name: Shatana Bentley (Use this template to answer your Unit 6 homework assignment. This template is provided to help guide you through the answer process and is organized in the way that I will grade your assignment. Your text box will expand as you type in your answers. You will notice that in some cases I have designated a word minimum. This is to encourage you to thoroughly explore and provide a complete answer. There are other responses where you need to provide a certain minimum facts for a complete answer <such as: at least 5 relevant items> you need to provide at least 5 relevant items for full credit. Also, failure to achieve the minimum word requirement may affect your “development score”. ) 10-63 a. For each control identified, briefly indicate the financial misstatement that could occur if the control is not implemented effectively. (Minimum of 10 words) b. Identify a test of control that the auditor can do to determine the effectiveness of the control. (Minimum of 20 words) 1 Authorization: All transactions under $ 10,000 may be approved by the computer authorization program. The credit manager must approve all transactions over $ 10,000. Example :. The  recording  of transactions   will not be  misstated.  However,  the   collectability of accounts  receivable  may  be   impaired.  Thus,  it is possible  that net  accounts   receivable  may  be  overstated.  “ Example  1a.  Review  procedure s  to   implem e nt  the  computer  program  and   determine  the  extent  that the  credit department   tests  and  monitors  the  correctnes s  of the   authorization  program.  “ 1b.  Consider  testing  the  program  by   submitting  transactions  against  it and  see  if   the  transactions  are  proce s s e d  correctly.  (This  is   discuss e d  in Chapter  8 as  the  test  data   approach.)  “ 1c.  Take  a  sample  of sales  transactions  over   $10,000  and  review  to determine  whether  there   is evidenc e  that authorization  had  been   obtained.  “ 1d.  Take  a  sample  of sales  transactions  less   than  $10,000  and,  for each  transaction,
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This note was uploaded on 01/02/2012 for the course AC 410 taught by Professor Daniels during the Fall '09 term at Kaplan University.

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ShatanaBentley-AC410 - AC 410 Unit 6 Homework Your Name Shatana Bentley(Use this template to answer your Unit 6 homework assignment This template

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