Mykayla Johnston is an experienced audit senior who has been asked to gather evidence about sales transactions at Abraham Engineering which designs and manufactures custom-designed tools for special purposes in the mining industry. Abraham Engineering also sells but does not manufacture a large number of different makes and models of standard mining tools. The custom-designed tools are made only on the signing of a contract and receipt of a deposit whereas the standard products are supplied to regular customers on receipt of a telephone order.

Abraham Engineering’s sales transactions vary from a few dollars to millions of dollars depending on the number of items sold, whether the individual items are large or small and whether the products are standard or custom-designed tools.

Required

Outline and justify to Mykayla an audit program that addresses appropriate:

1.sample selection

2.vouching procedures

3.CAATs that could be used to help gather the evidence, including at least one feature of Active Data for Excel.