Pinnacle Manufacturing Part V
PINNACLE MANUFACTURING―PART V
ACCT444 Group Project Part 5 S 15-35 a. (Debbie, Anhchi, and Rachel)
Client: Pinnacle Manufacturing
Audit Area: Tests of Controls and Substantive Test of Transactions―Acquisitions.
Define the Objective(s): What is the objective?
Define the population precisely (including stratification, if any): What is the population?
Define the sampling unit, organization of population items, and random selection procedures: What is the sampling organization?
Description of Attributes | Planned Audit | Actual Results | | EPER | TER | ARACR | Initial
Sample
Size | Sample Size | Number of Exceptions | SER | Calculated
Sampling
Error
(TER-SER) | 1. Evidence of internal verification of voucher package including propriety of purchase, dates, unit costs, prices, extensions, footings, account classification, recording in journal, and posting and summarization. (6a, b) | 0 | 6% | 10% | 30 | 30 | 1 | 3.3% | 2.7% | 2. Prices on vendors' invoices conform to approved price limits established by management. (6c) | 0 | 5% | 10% | 40 | 40 | 0 | 0 | 5% | 3. Price times quantity and other calculations on the vendor's invoice are correct. (6d) | 1% | 5% | 10% | 50 | 50 | 0 | 0 | 5% | 4. Evidence of proper account classification on vendors' invoices. (6e) | 1% | 5% | 10% | 50 | 50 | 0 | 0 | 5% | 5. Dates on entries in purchases journal agree with dates on receiving reports. (6f) | 1% | 5% | 10% | 50 | 50 | 1 | 2% | 3% | 6. Evidence of internal verification of each purchase voucher. (6g) | 0 | 6% | 10% | 30 | 30 | 0 | 0% | 6% |
Results: Are the controls effective and why or why not?
ACCT444 Group Project Part 5 S 15-35 b. (NAJIA & JESSICA)
Client: Pinnacle Manufacturing
Audit Area: Tests of Controls and Substantive Test of Transactions―Cash Disbursements
Define the Objective(s): Examine cancelled checks and other related documents
ACCT444 Group Project Part 5 S 15-35 a. (Debbie, Anhchi, and Rachel)
Client: Pinnacle Manufacturing
Audit Area: Tests of Controls and Substantive Test of Transactions―Acquisitions.
Define the Objective(s): What is the objective?
Define the population precisely (including stratification, if any): What is the population?
Define the sampling unit, organization of population items, and random selection procedures: What is the sampling organization?
Description of Attributes | Planned Audit | Actual Results | | EPER | TER | ARACR | Initial
Sample
Size | Sample Size | Number of Exceptions | SER | Calculated
Sampling
Error
(TER-SER) | 1. Evidence of internal verification of voucher package including propriety of purchase, dates, unit costs, prices, extensions, footings, account classification, recording in journal, and posting and summarization. (6a, b) | 0 | 6% | 10% | 30 | 30 | 1 | 3.3% | 2.7% | 2. Prices on vendors' invoices conform to approved price limits established by management. (6c) | 0 | 5% | 10% | 40 | 40 | 0 | 0 | 5% | 3. Price times quantity and other calculations on the vendor's invoice are correct. (6d) | 1% | 5% | 10% | 50 | 50 | 0 | 0 | 5% | 4. Evidence of proper account classification on vendors' invoices. (6e) | 1% | 5% | 10% | 50 | 50 | 0 | 0 | 5% | 5. Dates on entries in purchases journal agree with dates on receiving reports. (6f) | 1% | 5% | 10% | 50 | 50 | 1 | 2% | 3% | 6. Evidence of internal verification of each purchase voucher. (6g) | 0 | 6% | 10% | 30 | 30 | 0 | 0% | 6% |
Results: Are the controls effective and why or why not?
ACCT444 Group Project Part 5 S 15-35 b. (NAJIA & JESSICA)
Client: Pinnacle Manufacturing
Audit Area: Tests of Controls and Substantive Test of Transactions―Cash Disbursements
Define the Objective(s): Examine cancelled checks and other related documents