III.Class Project:

Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are preparing an audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant and equipment.

Week 3- Critique the three following (attachments) audit programs for cash examples.

Preparing a well written . Use the following items as necessary as a guide.See chapter 6.

-How well did each program address the assertions?

Existence and occurrence

Rights and obligations

Completeness

Cutoff

Valuations, allocation, and accuracy

Presentation and disclosure

Did any of the audit programs provide clear descriptions of the assumptions?

How were the risks identified? Was the list of risks complete?

What were your thoughts on theobjective of the audit?

How would you assess the scope of the audit?

How would you assess the quality and completeness of the analytical procedures?

What positive and negative confirmations were identified?

How would you assess the completeness of the risk assessment procedures?

How would you assess the quality and completeness of the tests of controls?

How would you assess the quality and completeness of the substantive procedures?

Did the audit program adequately address internal controls?

Rank the audit programs in letter order with A being the best, B next,etc.

Identifythe deficiencies in each of the three audit programs.

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