are shipped to customers. 14-6 Tests of controls: 1. On a sample of sales invoices‚ examine proper authorization and indication of internal verification of sales amounts. 2. Examine approved computer printout of unit selling prices. 3. Examine file of batch totals for initials of data control clerk; compare totals to summary reports. Substantive tests of transactions: 1. Recompute information on sales invoices. 2. Trace entries in sales
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Auditing‚ 12e (Arens) Chapter 1 The Demand for an Auditing and Assurance Profession 1.1 Identify the components of an audit and explain why there is a demand for audits 1) Which of the following illustrates the definition of auditing with respect to the evidence analysis process? A) accumulation and evaluation of evidence about balance sheet accounts B) learning about different types of computing technology‚ such as mainframes C) writing an operational audit report that is tailored to the client’s
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GREAT ZIMBABWE UNIVERSITY FACULTY OF COMMERCE DEPARTMENT OF ACCOUNTING AND FINANCE COURSE CODE: AC211 COURSE TITLE: AUDITING THEORY AND PRACTICE ASSIGNMENT FIRST SEMESTER 2014 QUESTION 1 Brian Ltd was formed on November 2013 in order to manufacture microchips. The directors are unsure of their responsibilities and the nature of their relationship with the external auditors. The audit partner has ask you to visit the client and explain to the directors the more fundamental aspects
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AUDITING 4 INTERNAL CONTROL In business control is required for optimum utilizatiion of resources and for maximising the profits.business operations are carried on with the help of human agents and equipments.both require supervision to ensure that tasks assigned to them are carried out properly to avoid wastes and losses. Internal control required for small business is not identical with that required for a large business in the sense that in case of the former‚the entire control
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the audit? The types of auditing samples are broken down into two different categories: statistical and non-statistical sampling. The purpose of auditing samples are designed to give the auditor the results he or she seeks‚ without having to completely audit 100% of the items within the audit population. Here are some of the different types of auditing samples broken out into the two categories: Statistical Sampling Methods: Random Sampling – Is an auditing method that basically means
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that each question should be of between 400-600 words 1) Rodney Brick is completing a Master of Accounting part-time and has taken on a role as an auditing assistant with an audit/accounting firm and his first job is to assist with auditing the books of Daffey Jones Ltd‚ a major retailer. Whilst undertaking the audit‚ Rodney comes across certain financial information that he believes will assist him in completing one of the auditing assignments he is currently working on so he copies the information
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ch9 Student: ___________________________________________________________________________ 1. The risk of incorrect acceptance and the risk of assessing control risk too low relate to the A. Preliminary estimates of materiality levels. B. Allowable risk of tolerable error. C. Efficiency of the audit. D. Effectiveness of the audit. 2. While performing a substantive test of details during an audit‚ the auditor determined that the sample results supported the conclusion that the recorded
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How sensitive is return on capital to the forecast assumptions in case Exhibit 8? An increase in cash operating expenses decrease NOPAT‚ which in turn makes ROC extremely sensitive when this ratio goes up; in general when total operating expenses go up NOPAT goes down‚ thus ROC goes down. In addition if the COGS increase this drastically drops ROC. The total assets has a big impact on ROC an increase of 1000m increased ROC by a full 1.5 percent. The ROC is also very sensitive to the Price to Earnings
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Trade receivables and credit sales system 5 C. Property‚ Plant and equipment (PPE) 6 D. Trade payables transactions and balances 6 Implications 8 A. Inventory balances and purchases transactions 8 B. Trade receivables and credit sales system. 10 C. Property‚ Plant and equipment (PPE) 12 D. Trade payables transactions and balances 15 Conclusion The following conclusions have been drawn out with regards to each segment 19 A. Inventory balances and purchases transactions 19 B. Trade receivables
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Question 1. Ethical Considerations (A) As an auditor when provide professional service and client have to follow the fundamental principle of the code of Ethics Integrity An auditor has to be fair and honest to the client. There is an obligation on the auditor to be straightforward and honest in all the professional and business relationships. In this case‚ an auditor has to be integrity to present their honest and fair to the client. Even Game’s Limited’s managing director is unhappy with
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