23 Jul Decision 10
Reminder – I do not allow direct quotes in student’s work in this class. You need to paraphrase and cite your outside sources. “Outside sources” do not include the text and so you don’t need to cite it.
1) Chapter 10 focuses on tests of controls, transactions, and balances for the acquisition and payment cycle. See if you can develop two substantive analytical procedures that auditors might use to gather evidence in this cycle. Be clear on how your procedure might detect misstatements in account balances. You don’t need to tie them to audit objects since substantive analytical procedures are usually general enough to test several audit objectives at once.
2) One audit test covered in the chapter is accounts payable confirmations. Do you think accounts payable confirmations can be useful to the auditor? How? What are the limitations of accounts payable confirmation? What are some alternatives to accounts payable confirmation?
3) What are some possibilities for fraud in the property, plant, and equipment accounts? What are some judgments that the auditor needs to make in this account?
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