A8 Twatt - Chapter 8 Tiffany Watt Assignment: A8 November...

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Chapter 8 Tiffany Watt Assignment: A8 November 4, 2011 AC 405 – E01 8-22. Is it possible that this situation could make the needed audit procedures cost prohibitive, so that the company could not get an audit? Discuss. How might the company need to modify its procedures? Yes, it is possible that this situation could make the needed audit procedures cost prohibitive. However, one way to reduce costs, according to AS 5, would be to dual test both balances and internal controls. The company might modify its procedures by standardizing them for all locations. 8-29. (a) Identify the controls present in this cash disbursements process and the errors they are designed to prevent or detect. One control present in this process is the approval that the information entered by the clerk matches vendor names, employee information, and accounts that have been previously approved by management and input to a master file. However, this control is risky because the same clerk who initially enters the information is also the same clerk that
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This note was uploaded on 02/02/2012 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.

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