I need help for Alpine cupcakes audit case study - account receivable module.
Alpine Cupcakes, Inc. Audit Case Assignments Assignment: . . . h ' ' ' t, t ke a moment to look through the papers In this module. Note Int e r Before beginning the assrgnmen a ted by Garcia and Foster CPAs lower left-hand corner that some documents are audit work papers crea ' as they conducted the audit. Note that other papers are client documents that Garcra and Foster collected and kept in support of their audit. Finally, note the numbering system In the lower rIght-hand corner and how each paper within the audit is numbered and linked back to the audit program. In this part of your assignment, you will examine the firm's audit documentation in relation to the audit of Alpine's accounts receivable and sales processes and accounts. Please complete the following tasks. Q1. Research, cite, and summarize (in one or two sentences per standard identified) the auditing I. J standards that address Garcia and Foster, CPA's, responsibility in relation to sending accounts receivable confirmations. Identify the most relevant paragraph(s) in each standard. 1 _/ Q2. Review the accounts receivable narrative (ARM) and review the accounts recelvable owchart (AR.1.2) to identify all of the internal control weaknesses for the accounts receivable and sales . processes. Provide one or two sentences on why each item identified is a weakness. ThIS questlon relates to Step 2 of the Garcia and Foster Audit Plan. Q3. Based on your review of the accounts receivable test of controls procedures (workpapers AR.2.1' to AR.2.4), you believe that there were some issues with the audit work performed. Review in detail the auditing procedures from the audit program and the related documentation. Pay particular attentlon to their implementation of the attribute sampling procedurestheir sample selection process and evaluation of the results. Identify any of the following issues: , a. Did they perform all of the steps associated with the audit program? . b. Did they perform the steps accurately? If not, specifically state the nature of the problem and follow up on it to the extent possible with the information given. c. Do you see any other issues or problems with the auditors' work or client documentation? This question relates to Step 4 of the Garcia and Foster Audit Plan. . .V Q4. Review the accounts receivable lead sheet memo and related workpapers (AR.3.1 to AR.3.4).' * " - Evaluate the auditors' tickmarks, comments, and explanations in the memo and on the lead sheet. Identify any of the following issues: ' l v 1' 5'- a. Did they perform all of the steps associated with the AR.3 audit procedure? ' b. Did they perform the steps accurately? If not, specifically state the natured? thep'rr ,_ 1~ follow up on it to the extent possible withthe information given. c. Do you see any other issues or problems with the auditors' work or client docum'e This question relates to Step 4 of the Garcia and Foster Audit Plan. 05. You are also concerned about the adequacy of the substantive audit work don by / You decide to carefully review the substantive testing performed on the age a; summary (AR.4.1 to AR.4.5), accounts receivable conrmation testin A testing (AR.6.1 to AR.6.7), and the testing of the allowance forum , Identify any of the following issues: a. Did they perform all of the steps associated-with the: b. Did they perform the steps accurately? If n t follow up on it to the extent possiblew' c. Do you see any other issues or big ; This question relates to Step 4 of th " Q6. After answering the above questions (Anna Garcia) summarimng yo less single-spaced, 3- l W \"ea 3 E c
