Overview and Objectives of Audit Procedures

12-46 (Overview and Objectives of Audit Procedures) The following represents a critical review of the documentation of a new auditor for the cash and marketable securities audit areas. Several deficiencies are noted; they resulted in significant errors not being initially identified. Required For each item listed as follows: ...continues

Payroll Audit Procedures, Computers, and Sampling

9.81 Payroll Audit Procedures, Computers, and Sampling. You are the senior auditor in charge of the annual audit of Onward Manufacturing Corporation for the year ending December 31. The company is of medium size, having only 300 employees. All 300 employees are union members paid by the hour at rates set forth in a union contr ...continues

Errors That Could Occur from Control Weaknesses

9.83 ICQ Items: Errors That Could Occur from Control Weaknesses. Refer to the internal control questionnaire on a payroll system (Appendix 9A.3 - see below) and assume the answer to each question is "no." Prepare a table matching the questions to errors or frauds that could occur because of the absence of the control. Your col ...continues

THE TROLLEY DODGERS

CASE 3.1 THE TROLLEY DODGERS In 1890, the Brooklyn Trolley Dodgers professional baseball team joined the National League. Over the following years, the Dodgers would have considerable difficulty competing with the other baseball teams in the New York City area. Those teams, principal among them the New York Yankees, were muc ...continues

Selecting the Proper Audit Opinion and Report Modification)

16-47 (Selecting the Proper Audit Opinion and Report Modification) Required Audit situations 1 through 8 present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue, and List B represents the report modificati ...continues

Audit Evidence and Conclusions

13-33 (Audit Evidence and Conclusions) The following conclusions were taken from a staff auditor’s summary worksheet for fixed assets and the worksheet for prepaid insurance. Audit Conclusions or Situations 1. The choice of eight years for straight-line depreciation of the company’s trucks appears unreasonable. I would sugg ...continues

Physical inventory

List the procedures an auditor should follow during the count of the client’s physical inventory

Inventory

Why do you think inventory is one of the more complex areas for and auditor to test? What kinds of inventories are performed at your organization? Have you ever taken part in them?

Cash flow

Is it possible for a company to have a profit and a negative cash flow? Explain your answer.

Statements

The balance sheet, income statement and statement of cash flows are tools used to evaluate a company’s financial position. Which one of these statements do you believe provides most useful information? Explain your position.