Audit 13 14 Essay - 740 Words

13-22 a. (2) A test of control. b. (2) Relative effectiveness and efficiency of the tests. c. (1) Substantive tests. d. (4) IV, I, III, and II 13-23 a. (2) Tests of controls include observations of the proper segregation of duties. b. (3) Tests of controls. c. (1) A reasonable degree of assurance that the client’s internal controls are operating effectively on a consistent basis throughout the year. d. (3) Reperformance. 13-24 1. Foot the accounts payable trial balance and compare the total with the general ledger. a. Test of details of balances b. Reconciliation 2. Confirm accounts payable balances directly with vendors. a. Test of details of balances b. Confirmation 3. Account for a sequence of checks in the†¦show more content†¦a. Test of control b. Inquiry 13-26 1. Use audit software to foot and cross-foot the cash disbursements journal and trace the balance to the general ledger. a. Acquisition and payment b. Reconciliation c. Substantive d. ST of T e. Posting and summarization f. N/A 2. Select a sample of entries in the acquisitions journal and trace each one to a related vendor’s invoice to determine whether one exists. a. Acquisition and payment b. Documentation c. Test of control or substantive d. ST of T e. Occurrence f. N/A 3. Examine documentation for acquisition transactions before and after the balance sheet date to determine whether they are recorded in the proper period. a. Acquisition and payment b. Documentation c. Substantive d. TD of B e. N/A f. Cutoff 4. Inquire of the credit manager whether each account receivable on the aged trial balance is collectible. a. Sales and collection b. Inquiry c. Substantive d. TD of B e. N/A f. Realizable value 5. Compute inventory turnover for each major product and compare with previous years. a. Inventory and warehousing b. Analytical procedure c. Substantive d. AP e. N/A f. Realizable value 6. Confirm a sample of notes payable balances, interest rates, and collateral with lenders. a. Capital acquisition and repayment b.Show MoreRelatedDonald R. Cressey s Theory Of The Occupational Offender1163 Words   |  5 Pages2013, p. 13). Cressey focused his research on people who started out doing their jobs in an honest way, but at some point, they started embezzling from their employer (Wells, 2013, p. 13). Cressey’s hypothesis was that embezzlers or â€Å"trust violators† had three common characteristics (Wells, 2013, p. 13). These three characteristics would later become known as the â€Å"fraud triangle† (Wells, 2013, p. 13). Frist, the trust violator had to have a â€Å"non-shareable financial problem† (Wells, 2013, p. 13). A non-sharableRead MoreKey Audit Matters (KAM)727 Words   |  3 PagesTo enhance the perceived value of financial report audits, the IAASB has set out the public issuance of Key Audit Matters (KAM) or audit commentaries in the Proposed New Audit Report. 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