Audit

CAS 300 requires auditors to their audit using a risk based model where the nature, timing and extent of audit procedures are based on the assessed risk of material misstatement. Pickett (2006) argues that for audits to be effective and efficient, much of the audit effort should be focused on areas that are considered to pose the highest audit risk. Additional audit procedures should be linked to individual audit assertions whereas other audit procedures need to be performed as and when needed. Thus, for an audit plan to be put in place, it is necessary for an auditor to come up with a risk profile of the client comprising an understanding of the business operating by the audit client, assess business risk and also perform its preliminary analytical review.

There where accounts that had the same debit and credit amounts just a few days apart. At the end of the last quarter in 2009, there were 22 sales recorded. At the end of the previous quarters there was not a high amount of sales which leads one to think that the sales were booked at the end of the year to make the company meet their goal. There was also a high number of invoices with no bill of landing. With a high number of no bill of landings, false billing is presumed. With a bill of landing of a lesser weigh than that which was invoiced, leads to the full order not being shipped, and over charging of the customer or that special arrangements have been made with the customer to receive a discount for early billing. There was also 5 times where invoices where invoiced before they were shipped. This leds to the fact that sales where most likely

This report plans the audit for the company Pacific Star Network Limited. This report covers only the first stage of an audit that is risk assessment. Planning of an audit requires that the auditor plan their audit by assessing the risk elements and try to reduce that risk using different audit risk procedure calculations. This report tells about the accounts, which have the most risk of being materially misstated in the Balance sheet and Statement of financial position of the company report of the year 2015 and 2014. For identify the misstated account, simple comparison analytical procedure is used. This report also set the materiality level for the purpose of audit. Therefore, the reason for material misstated can be identify.

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:

For my Introduction to Communication class I was asked to do a self-audit assignment recording my technologies use for two days and then undergo a digital detox for 24 hours. Throughout the two days of technology use I mostly used my computer, smartphone, and the tablet. From my diary most of my time is spend on the computer. The use of my computer and cell phone has helped me communicate with my friends through social media, to be entertained, to help take away my boredom. There was a lot of time I use it for school purposes because I have to access my e-mail or go on Canvas to do school work. The day of digital detox I did some writing for my other class. I couldn’t use my computer to type out my assignment, which I wasn’t use to. After writing out my assignment I realize how messy my writing was and it was so

Inventories Land Long term debts Machinery Marketable securities Notes payable Operating expense Paid-in capital in excess of par Preferred stock Preferred stock dividends Retained earnings Sales revenue Selling Expense Taxes Vehicles P3-11

Compute the uncollectible account expense, and make the appropriate journal entry, for the current year assuming the uncollectible account expense is determined as follows:

Over the past five years auditing VHL I have developed close friendships with some board members who are responsible for maintaining internal controls and financial operations in the organization. As a CGA I am bound by CEPROC, which states that I must remain independent in appearance and fact in order to provide an unbiased objective opinion. I feel these relationships, and the length of time I have audited VHL, could lead to a familiarity threat that would inhibit my ability to apply professional skepticism and jeopardize the audit. Due to the level of influence the board has over the organization and the finances it is unlikely that acceptable safeguards could be applied, therefore I must decline to continue any further with this audit, and request someone else assume my role.

The audit engagement team’s responsibilities to determine if an engagement is a high-risk or normal-risk engagement are the same. They both use the audit risk model to determine the inherent and control risk to detect if the account contains errors that could be material when combined with errors in other accounts and detection risk that the auditor will not detect material errors. By using the audit risk model, it would help in determining the substantive audit procedures needed for testing. The factors that prompted Sullivan to designate 1997 audit a high-risk engagement are the subjective nature of the earned value method; Paragon’s large unbilled revenues; the aggressive revenue recognition practices advocated by Golden Bear management; severe weaknesses in Paragon’s cost accounting system. These factors should have alerted Sullivan and his subordinates to be particularly cautious.

Analytical analysis along with the experience from previous audits have helped us in identifying the risks at the financial statement level and identifying the six specific account balances that need to be focused while auditing the financial statements ending October

Chris’ first objective in analyzing his firm’s receivables is to understand how they are recorded. The International Standards require receivables to be measured at fair value with an amortization cost. However, Chris was not given this information in his financial records. Still, what he was given is that Ruckman analyzes accounts receivable based on transaction history and creditworthiness of the customer, suggesting that the firm’s receivables are done per case, and thus cannot be lumped together. With that, Chris can move forward knowing that accounts receivable are in accordance with IFRS.

The purpose of this memo is to communicate to you the results and findings from our team’s assessment of the Accounts Receivable balances for Key West Company as of 20X1. Our team has already completed a thorough evaluation of the company’s internal control and we believe they are excellent. Therefore, the

Team C analyzed the accounts payable, accounts receivable, payroll, and inventory systems for Kudler Fine Foods. Kudler would now like to see a proposed audit schedule for these systems. The team will distinguish between the types of audits that may use for each process. The team will also recommend the most appropriate audit for each process and explain how to conduct the audits. Identifying events that may prevent reliance on auditing through the computer will also be presented to Kudler for review (Apollo Group, 2009).

When using substantive analytical reviews, an auditor must first develop their own expectation of what they think the account balance should be and once developed, the expectation is compared to what the recorded amount is. This technique is used to identify any possible material misstatement. Significant differences have to be investigated and supported with evidence. This process must be done with exact precision and a high degree of accuracy.

• Systems and Applications: An audit used to verify that systems and applications are appropriate, are efficient, and are adequately controlled to ensure valid, reliable, timely, and secure input, processing, and output at all levels of a system 's activity.