Question
Consider the type of information and evidence that should be gathered when completing the audit of the internal control activities related to the warranty reserve
Consider the type of information and evidence that should be gathered when completing the audit of the internal control activities related to the warranty reserve account at Hamilton. To do so, please ask yourself about the type of information that would be helpful to determine whether the internal control activities were operating effectively. How can you be sure that the information gathered is reliable? In addition, how can you be sure that the evidence is appropriate in this situation? Finally, what evidence could be gathered that might reveal that the internal controls were NOT operating effectively?
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