Factors Affecting The For Verifying Accounts Receivable

When collecting evidences must ensure there are no confidentially information which relates to neither the company nor their clients/customers. The evidences must be created by the candidates so that way they are valid and fair. If the candidate does not create the evidence then it is hard to identify whether or not it is fair. All evidences must be valid. I must check dates and check the assessment reports. I must speak to the Manager and advise them which type of evidence the candidate will be submitting.

It is the susceptibility of an account balance or a class of transactions to a material misstatement, assuming that there were no internal controls. The inherent risk at Telstra is that there may be certain types of misstatements that may not be identified during the course of audit. The inherent risk associated with the audit of Telstra is ascertained based on the nature of the business. Telstra Corporation Limited have these kinds of risks:- inventory valuation risk, intangible assets valuation risk, foreign currency risk, interest rate risk, tax risk, amendment risk and compliance risk. All the above stated risks pose potential material misstatements on the financial statements and thus need to be addressed (Telstra

Process each case to sort through and analyze documents and information that may have legs. (And subsequent documents and information prepared opponents through their discovery) to check the BA is important or relevant to the case otherwise. Document review is the main

h. This is important so that the company can continue in such a way as to be judicially prudent. They must know what is the acceptable method of getting evidence to keep it safe for court admission. There may also be extenuating circumstances that must be taken into account depending on the organization and the event.

assertion of existence and completeness for cash, this procedure is beyond the scope of this case and is not required

Obtain evidence: Carry out the investigation by gathering sufficient reliable information to enable the issue to be properly addressed by proving or disproving matters relevant to the issue being investigated, taking into account all relevant information and no irrelevant information. At this stage, it may be necessary to refer any matters that may be misconduct or corruption to the Corruption and Crime Commission.

and used, the estimates of future cash flows used in that test shall be based

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

1. The implication of this factor is there may be an increased risk of misstatement of bad debt expense and the allowance for bad debts. The auditors may decide to assign a more experienced auditor to this audit area. In addition, the auditors will decide to increase the evidence related to the adequacy of the

| Implication: Increased risk of misstatement of bad debt expense and allowance for bad debts. Response: Assign more experienced auditors to this area. Increase evidence.

The account with the greatest risk of material misstatement is the inventory account. Two other accounts that have risk, but do not have as much risk as the inventory account are: accounts receivable and the property and equipment account. Finally, another account that should be monitored is the short-term investments account.

1. The requirements related to developing an expectation and conducting analytical procedures when those procedures are intended to provide substantive evidence is provided by the reorganized Audit Standard 2305 Substantive Analytical Procedures effective December 31, 2016 in the following list:

In terms of the confirmation of cash balances, what deficiencies can you identify in terms of the procedures

c. Trace the check number and amount of outstanding items – Occurrence, Completeness, & Accuracy (AU-C 315.A114 a.i-iii)

When engaged in auditing a public firm, such as Apollo Shoe Inc., an auditor must determine when to trust in the company’s internal controls and when to ascertain auxiliary testing methods are obligatory to analyze control risks. The sales and collection cycle is rather a substantial fraction of the audit because this unique segment employs a multitude of documentation and records ranging anywhere from customer and sales orders, shipping documents, credit memos, and general journal entries; therefore, a working