Audit of the Acquisition and Payment Cycle: Tests of Controls‚ Substantive Tests of Transactions‚ and Accounts Payable. Chapter 19 ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 19 - 1 Learning Objective 1 Identify the accounts and the classes of transactions in the acquisition and payment cycle. ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 19 - 2 Transactions in the Acquisition and Payment Cycle 1. Acquisitions
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AUDIT PROGRAM DESIGN PART II Sales and Collection Cycle The objective in the audit of the sales and collection cycle is to evaluate whether the account balance affected by the cycle are fairly presented in accordance with accounting standards. There are five classes of transactions in the sales and collection cycle. • Sales • Cash Receipts • Sales returns and allowances • Write-off of uncollectible accounts • Estimate of bad debt expense (Arens‚ 2012‚ p.442) The Key control
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Person A is Alex Frayn. He is the CFO at D-Mertons. He is responsible for determining and reporting the financial information of a company for the previous years as well as for the future as the accuracy and the timeliness of the report helps greatly in the decision making of the company for future decisions as well as ensure that the financial information has been properly maintained and shared with the shareholders so that they know what the financial situation of the company is. Being the right-hand
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that the auditor’s responsibility is to express an opinion on the statements based on an audit conducted in accordance with auditing standards‚ and that the audit provides reasonable assurance that the financial statements are free of material misstatement. The
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Audit of the Inventory and Warehousing Cycle Chapter 21 ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 21 - 1 Learning Objective 1 Describe the business functions and the related documents and records in the inventory and warehousing cycle. ©2008 Prentice Hall Business Publishing‚ Auditing 12/e‚ Arens/Beasley/Elder 21 - 2 Flow of Inventory and Costs Raw Materials Beginning Raw inventory materials used Purchases Ending inventory Direct Labor Actual
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requirements and performs the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment‚ including the assessment of the risks of material misstatement of the financial statements‚ whether due to fraud or error. In making those risk assessments‚ the auditor considers internal
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a). |Account Balance |% change 2010-2011 |% Change 2009-2010 | |Net sales |1.45% |2.70% | |Cash |5.41% |-9.19% | |Net income |16.50% |-39.54% | |Accounts payable |37
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Part 1 The purpose of Part 1 is to perform preliminary analytical procedures. You have been asked to focus your attention on two purposes of analytical procedures: Assess going concern and Indicate where there is an increased likelihood of misstatements Required for Part 1 Calculate at least ten ratios that are useful to assess going concern using Heritage’s financial statements‚ which are located on Blackboard‚ appendix 1 & 2. Document the ratios in a format similar to the following: Ratios
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01/01/2012 Raj‚ The following memo addresses the risk assessment of one our clients‚ Gold Explorer Inc.; a major public Canadian gold mining company. The firm has been auditing this company for the past 8 years‚ in which very few misstatements were discovered and where management integrity was never a concern. However‚ in this fiscal year‚ the audit of Gold Explorer Inc will be more challenging because of increases in inherent risk and lower levels of acceptable audit risk‚ resulting
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DECLARATION OF ORGINALTY AND WORD ACCOUNT I hereby declare that the graduation project is based on my original work except quotations and citations‚ which has been duly acknowledged. I also declare that it has not been previously or concurrently submitted for any other course/degree at Help University or other institutions. The word count is 10‚052 words. NGUYEN THI HIEN E0700282 i ACKNOWLEDGEMENT First of all‚ I would like to express my sincere appreciation to my supervisor‚
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