An opinion might be expressed as to whether the information fairly exists on the basis
specified. In an engagement like this the auditors should perform audit procedures and
materiality should be judged in relation to the matters presented.
A) The subsequent events refer to an event that occurred after the balance sheet date, but before
the date the auditors report was issued. The subsequent event might have a material effect on
the companys financial statements. So it might requir
1) The reason for reconciliation of monthly statements of vendors with accounts payable is done
to try to reduce the risk of overstatement or understatement of account payable.
2) Matching of invoices of the vendor with receiving reports is an i
Weakness in the internal control over inventories
1. The goods necessary for production should be kept in a warehouse until needed instead of
being sent directly to the production department directly.
2. The receiving department should prepare a
Internal Control and Audit Sampling
7-28 Adherence to generally accepted auditing standards requires, among other things, a
proper understanding of the existing internal control. The most common approaches to
documenting the understanding of internal cont
Questions Requiring Analysis: 5-36
Comment on the reliability of each of the following examples of audit evidence. Arrange
your answer in the form of a separate paragraph for each item. Explain fully the reasoning
employed in judging the reliability of ea
a) If management and the board of directors of DGF have taken appropriate remedial action then Ron
Barber does not has to report the matter outside of the company.
b) If management and the board of director fail to take the required remedial then
Analytical essay on A-one Travel
Account receivable policy
The A-one travel is a company providing tours and travel service to its customers. The company
has provided online booking facility to its cu
a) In this scenario there are two weaknesses. The first one is that they have the same person
writing checks, records cash disbursements and bank reconciliations. The second weaknesses is
that the company lets checks remain outstanding indefinit