Week 4 ACC 403 Essay

If the documents are incorrect in some way this can have adverse effect on a business and documents can make a significant contribution to the effectness and efficiency of the business.

Describe how to complete and maintain documentation in accordance with organisational procedures, in relation to:

The business must implement and maintain a good document discipline, i.e. no paper should be left laying around for unauthorised

documentation, materiality and risk, internal control, statistical tools, and the overall audit plan and program.

1. A company’s ending accounts receivable balance and the period’s advertising expense would be found on which financial statements, respectively

reliable evidence, the confirmation process is subject to the risk of interception and alteration of

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

ii – An audit trail contains relevant details within source documents. It provides step-by-step transactional data from a source document to the final financial report. The audit trail can act as evidence to any investors of how accurate information on a financial statement is, by providing proof of proper record keeping by an accountant within a

• Audit documentation is used by the successor auditor when reviewing the predecessor auditor’s work. The successor auditor will review the previous year’s audit documentation to help gain a better understanding of the business, to identify any high risk areas that might affect acceptable level of risk, and to assist in planning the audit. Without this documentation it would be difficult for the successor auditor to achieve these goals.

Analyze the balance sheet and income statement of the company that you have selected, and outline your method for evidence collection which should include, but not be limited to, the type of evidence to collect and the manner in which you would determine the sufficiency of the evidence.

A positive outcome regarding the Bureau’s check of my references. A positive outcome regarding the Bureau’s check

Since there is a risk that recipients of a positive form of confirmation request with the information to be confirmed contained on it may sign and return the confirmation without verifying that the information is correct, blank forms may be used as one way to mitigate this risk. Thus, the use of blank confirmation requests may provide a greater degree of assurance about the information confirmed. However, blank forms might result in lower response rates because additional effort may be required of the recipients; consequently, the auditor may have to perform more alternative procedures.

Ensures all pertinent and financial documentation packages to are accurate vendors, contracting and the unit procurement team with a 0% returned status

As auditors, they have the responsibility of not only requesting a confirmation, but they should also follow up on necessary procedures to make sure that this process is accurately completed. Their duty is to be able to have control over this process from beginning to end in order to be able to rely on the evidence requested.

18 19 20 21 22 23 Incomplete records.......................................................................................................................... 293 Partnerships .................................................................................................................................... 323 Introduction to company accounting