Question
II. Critical Thinking and Writing Skills In February, your new work assignment of work is the audit of Miramar Company's financial statement of 12/31/2021. The
II. Critical Thinking and Writing Skills
In February, your new work assignment of work is the audit of Miramar Company's financial statement of 12/31/2021. The Manager in Charge gives the following audit assignment: Prepare a summary that describe the best practice in inventory accounting systems. The summary is going to use in the evaluation of Miramar Company systems.
III- Exercises
A. Explain why it is necessary to allocate the preliminary judgment about materiality to individual accounts (segments) in the financial statements. Also explain why allocating to balance sheet accounts is more common than allocating to income statement accounts.
B. Describe the audit risk model and each of its components
C. Using the Audit Program for Cash and Audit Program for Cash Extended, select 15 audit procedure and classify each procedure according to the types of audit evidence. Present your answer in the following table:
Audit Procedure | Type of Evidence |
|
|
|
|
|
|
|
|
D. Complete the table with assertion, specific risk assumption and recommended audit procedure that apply:
Possible Misstatement | Assertion | Specific Risk | Audit Procedures |
Cash is overstated because cash receipts reflected in the accounts do not exist or disbursement were not recorded. |
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started