AP 9.4

Phone: 4/1996 Meal Plan: (815) 275-2643 (815) 27 Ant Grad Dte: 2018/30 Cell Phone: Address 1: 16445 Scenic D- Campus Box: AP9-3 Payroll testing * the task of designing the audit program for the payroll area. There have been no recent nalytical procedures 3 ace with the general ledger. Among other tests, Anna is coneidering using the following s Anna to the payroll system, or its evidence re payroll tax expenses to the annual payroll multiplied by the statutory tax rates re the relationship between direct labor costs and number of employees with prior periods. Required te the reliability of the data that is being used for the substantive analytical procedures. ata for substantive analytical procedures AP9-4 D North West Paper Inc. (North West) provides cardboard, paper and plastic paokaging materials to a large number distributors in all states. The cardboard and paper division is a well-established business, but North West has been ts only since its takeover of Plastic Products Inc. 18 months ago. The takeover doubled North West's revenue 12 3 providing plastic prod- and caused changes in its ment structure- adding another two divisional managers. These new divisional managers are in charge of plasio nt areas of the country Plastic (Eastern) and Plastic (Western) and they join the Paper product sales to (Eastern) and Paper (Western) division different managers in reporting directly to the CEO. l internal operating reports are now structured along the four divisional reporting lines, although external Al to be divisional lines, a of these materials to fill customer orders. Production processes in t mal changes to the production processes used by Plastic Products Inc. sible to extract data along uced for the whole business. All purchasing and billing systems are fully integrated, although it is pos ate (as before). North West purchases bulk supplies of raw plastic and paper and makes boxes, rolls and sheets he paper divisions have not changed, and North West has made mini- Required 1. Identify the inherent risks at the financial statement level caused by the takeover of Plastic Products Inc. What procedures could the auditors take to respond to risk at the financial statement level? 2. Discuss the factors that would increase or decrease the reliability of data used in substantive analytical procedures at North West. 3 AP9-5 Persuasiveness of evidence from substantive analytical procedures * * ADA Mathew has the task of reviewing the evidence from substantive analytical procedures conducted b Smalley Services inc. The audit associates have reported the results of these substa y the audit associates on the aud and equipment Phone: 4/1996 Meal Plan: (815) 275-2643 (815) 27 Ant Grad Dte: 2018/30 Cell Phone: Address 1: 16445 Scenic D- Campus Box: AP9-3 Payroll testing * the task of designing the audit program for the payroll area. There have been no recent nalytical procedures 3 ace with the general ledger. Among other tests, Anna is coneidering using the following s Anna to the payroll system, or its evidence re payroll tax expenses to the annual payroll multiplied by the statutory tax rates re the relationship between direct labor costs and number of employees with prior periods. Required te the reliability of the data that is being used for the substantive analytical procedures. ata for substantive analytical procedures AP9-4 D North West Paper Inc. (North West) provides cardboard, paper and plastic paokaging materials to a large number distributors in all states. The cardboard and paper division is a well-established business, but North West has been ts only since its takeover of Plastic Products Inc. 18 months ago. The takeover doubled North West's revenue 12 3 providing plastic prod- and caused changes in its ment structure- adding another two divisional managers. These new divisional managers are in charge of plasio nt areas of the country Plastic (Eastern) and Plastic (Western) and they join the Paper product sales to (Eastern) and Paper (Western) division different managers in reporting directly to the CEO. l internal operating reports are now structured along the four divisional reporting lines, although external Al to be divisional lines, a of these materials to fill customer orders. Production processes in t mal changes to the production processes used by Plastic Products Inc. sible to extract data along uced for the whole business. All purchasing and billing systems are fully integrated, although it is pos ate (as before). North West purchases bulk supplies of raw plastic and paper and makes boxes, rolls and sheets he paper divisions have not changed, and North West has made mini- Required 1. Identify the inherent risks at the financial statement level caused by the takeover of Plastic Products Inc. What procedures could the auditors take to respond to risk at the financial statement level? 2. Discuss the factors that would increase or decrease the reliability of data used in substantive analytical procedures at North West. 3 AP9-5 Persuasiveness of evidence from substantive analytical procedures * * ADA Mathew has the task of reviewing the evidence from substantive analytical procedures conducted b Smalley Services inc. The audit associates have reported the results of these substa y the audit associates on the aud and equipment