ACCT444 WK5 HW5 Mk

13-26
a.
b.
c.
d.
e.
f.
1. Acquisition and Payment Acquisition and Payment
Reperformance
Substantive
S T of T
Posting and summarization
N/A
2.Acquisition and Payment
Documentation
Test of control or Substantive
S T of T
Existence
N/A
3.Inventory and
Warehousing
Analytical procedure
Substantive
A P
N/A
Realizable value
4.Capital Acquisition and Repayment
Confirmation
Substantive
T D of B
N/A
Existence
Accuracy
Presentation and disclosure
5. Acquisition and Payment
Reperformance
Substantive
T D of B
N/A
Detail tie-in
6. Acquisition and Payment
Documentation
Substantive
T D of B
N/A
Cutoff
7. Sales and Collection
Inquiry
Substantive
T D of B
N/A
Realizable value

13-30
a. Audit B represents the maximum quantum of reliance on internal control system than other two audits because it has very effective internal control system than other two audits. It is obvious that where internal control system is very effective then there reliance could be placed mostly
Tests of control depicts that reviewing the internal control system in pursue of reliability, effectiveness, accuracy, completeness, management ability, control procedure, documentation etc. to get evidence to perform audit task in assistance of making an opinion about financial statement of client. But it is not possible to get whole accuracy and effectiveness in tests of control because we all are the human body and we are head of mistakes and it is not promising because of some limitations like as wide business area, wide quantum of chances of ensuing mistakes, several processes and some inherent limitation as it is said that we observe what we are showed.
b. . The reason for lying less reliance on Audit A and Audit C is ineffective internal control system or less effective internal control system. Consequences for ineffective control system are: 1) Prospectivities of mistakes are likely to be more.
2) Less effective internal control enhances the burden of work of auditor.
3) In this situation auditor cannot