Course Project VI ∫ 1. Comparison of current listing of accounts payable with that of the previous audit date‚ noting significant changes in amounts and makeup. 2. Ratios: * Gross profit ratio * Overhead/material cost * Overhead/direct labor * Accounts payable/ purchases * Units purchased/units sold * Material/total production cost * Specific expense items/sales 3. Trends * Purchases by month * Gross profit by month * Other recurring expenses
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RAFT Task 1 Executive Summary By Cindy Granger December 1‚ 2011 Mission: To implement a corrective action plan in the area of Communication for Nightingale Community Hospital as required for Joint Commission Compliance. Corrective Action Plan: Standard: UP.01.01.01: Conduct a Preoperative Verification Process. At the present time Nightingale Community Hospital is not in compliance with rule UP.01.01.01. Nightingale currently has a five step verification process in regards to Preoperative/Pre-procedure
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Case You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process. This process has not been audited for three years and‚ as such‚ is due in the normal audit cycle. There have been no significant changes since the previous audit‚ that is‚ there were no system changes‚ no reorganization of personnel‚ and no substantive procedural changes. However‚ during the last assurance engagement‚ the internal audit function identified several observations
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Threats Safeguards Objective assessment a) Self-interest and intimidation threat: A close relationship between a member of the audit team‚ and the audit client or its management arise from a common financial interest may create self-interest and intimidation threat. (APES 110 s290.124) Per APES 110 s290.124‚ unless any financial interest is immaterial and the business relationship is insignificant to the firm and the client or it management‚ the threat creates would be so significant that
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Case 11.1: The Runners Shop Relevant Guidance • AU 339 (SAS 103): Audit Documentation • Auditing Standard No. 3: Audit Documentation • International Standard on Auditing 230’ (Revised) (Site -http://irba.co.za/documents/doc_00535.pdf ) Questions 1] Describe the purposes of audit documentation and explain why each purpose is important. According to AU 339.03‚ “audit documentation provides the principal support for the”: (a) “representation in the auditor’s report
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CHAPTER 1 AN INTRODUCTION TO ASSURANCE AND FINANCIAL STATEMENT AUDITING Answers to Review Questions 1-1 The study of auditing is more conceptual in nature compared to other accounting courses. Rather than focusing on learning the rules‚ techniques‚ and computations required to prepare financial statements‚ auditing emphasizes learning a framework of analytical and logical skills to evaluate the relevance and reliability of the systems and processes responsible for financial information‚
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According to Paragraph 4 of Auditing Standard No. 3 (PCAOB 2004)‚ “The auditor must prepare audit documentation in connection with each engagement conducted pursuant to the standards of the PCAOB. Audit documentation should be prepared in sufficient detail to provide a clear understanding of its purpose‚ source‚ and the conclusions reached. Also‚ the documentation should be appropriately organized to provide a clear link to the significant findings or issues.” Referring to Paragraph 4‚ the audit
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Chapter 3—Security Part I: Auditing Operating Systems and Networks TRUE/FALSE 1. In a computerized environment‚ the audit trail log must be printed onto paper document. 2. Disguising message packets to look as if they came from another user and to gain access to the host’s network is called spooling. 3. A formal log-on procedure is the operating system’s last line of defense against unauthorized access. 4. Computer viruses usually spread throughout the system before being detected. 5. A
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Ch. 5: Comprehensive Questions: Assertions 5-29 (Assertions) In planning the audit of a client ’s inventory‚ an auditor identified the following issues that need audit attention. 1. Inventories are properly stated at the lower of cost or market. 2. Inventories included in the balance sheet are present in the warehouse on the balance sheet date. 3. Inventory quantities include all products‚ materials‚ and supplies on hand. 4. Liens on the inventories are properly disclosed in notes
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with recorded disbursements in the cash disbursements journal. 4. Distinguish between “positive” and “negative” confirmations. Under what conditions would you expect each type of confirmation to be appropriate? Positive confirmation is an auditing inquiry that requires the customer to respond to the auditor whether the customer’s records do or do not
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