Kristin Jensen and Josh McDowell were assigned responsibility for auditing the accounts receivables ledger. Their focus has been the posting of entries for sales and sales returns and they have taken a predominantly substantive approach because although controls at Mayfield Agricultural are generally good, the large dollar value and infrequent nature of sales and trade receivables means its more efficient to test substantively rather than test controls.

One of the steps in the audit program is to compare the credit memo and supporting documents with the entries to debtors for sales returns and allowances in relation to dates, customers, products, quantities, prices, and amounts. Kristin and Josh checked all credit memos with dates of up to and including 30 June and report that they have found nothing unusual.

Required

Kel Richards is reviewing the working papers completed by Kristin and Josh but you have also had a look at the file. Explain to Kel:

1. why he should undertake some audit procedures himself and the types of things he should be looking for when performing these procedures.
2. other procedures that are best performed by a more senior auditor.