Only question 3.

Alpine Cupcakes, Inc. Audit Case Assignments Assignment: Before beginning the assignment, take a moment to look through the papers in this module. Note in the lower left-hand corner that some documents are audit work papers created by Garcia and Foster CPAs as they conducted the audit. Note that other papers are client documents that Garcia and Fo collected and kept in support of their audit. Finally, note the numbering system in th corner and how each paper within the audit is numbered and linked back to the audit program ster n this part of your assignment, you will examine the firm's audit documentation in relation to the audit of ne's accounts receivable and sales processes and accounts. Please complete the following tasks QResearch, cite, and summarize (in one or two sentences per standard identified) the auditing standards that address Garcia and Foster, CPA's, responsibility in relation to sending accounts ivable confirmations. Identify the most relevant paragraph(s) in each standard. Q2. Review the accounts receivable narrative (AR. 1.1) and review the accounts receivable flowchart 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 question lates 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 auditing procedures from the audit program and the related documentation. Pay particular attention to their implementation of the attribute sampling procedures-their sample selection process and evaluation of the results. Identify any of the following issues: Did they perform all of the steps associated with the audit program? 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. Do you see any other issues or problems with the auditors' work or client documentation? a. b. 2 c. Alpine Cupcakes, Inc. Audit Program Audit Year December 31, 20x2 WP Ref. # Date No, Inquiry of manAudit Procedure A. Discuss with C.S.1 management any related party transactions that would affect cash transactions and any restrictions on cash. Cs.1 B. Determine if any of the above items require AR.1 Understanding Internal controls over the sales, accounts receivable, and allowance p A Interview appropriate personnel to understand the 78S onriaca AR.Lt sales, accounts receivable, and allowance processes. narrative and a flowchart. document your understanding of the internal 8. Document the interview and responses in a C. Perform a walkthrough of the process and controls. AR.2 Test internal controls over the accounts recelvable a and sales processes. A. Select a random sample of recorded sales from the nSoless RI-2.2 sales journal to test internal controls over accounts receivable and sales processes. Use attribute sampling to calculate the sample size. B. For each item in the sample, obtain the customerTES a 28103 R. 2.2-2.4 purchase order, sales order, shipping documents, and copy of the sales invoice. Reperform the client's internal control procedures by comparing the quantity, price, and dates on the customer purchase orders, approved sales orders, shipping documents, and sales invoices. C.Follow up on any exceptions or deviations noted to 7ES 2312023 AR 2.2.2.4 determine if they are internal control weaknesses and whether the client has remedied them. D. Use attribute sampling procedures to evaluate the al2sla0SAR.21 results and conclude whether the internal controls over accounts receivable and sales are operating effectively. Alpine Cupcakes, Inc. Audit Case Assignments Assignment: Before beginning the assignment, take a moment to look through the papers in this module. Note in the lower left-hand corner that some documents are audit work papers created by Garcia and Foster CPAs as they conducted the audit. Note that other papers are client documents that Garcia and Fo collected and kept in support of their audit. Finally, note the numbering system in th corner and how each paper within the audit is numbered and linked back to the audit program ster n this part of your assignment, you will examine the firm's audit documentation in relation to the audit of ne's accounts receivable and sales processes and accounts. Please complete the following tasks QResearch, cite, and summarize (in one or two sentences per standard identified) the auditing standards that address Garcia and Foster, CPA's, responsibility in relation to sending accounts ivable confirmations. Identify the most relevant paragraph(s) in each standard. Q2. Review the accounts receivable narrative (AR. 1.1) and review the accounts receivable flowchart 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 question lates 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 auditing procedures from the audit program and the related documentation. Pay particular attention to their implementation of the attribute sampling procedures-their sample selection process and evaluation of the results. Identify any of the following issues: Did they perform all of the steps associated with the audit program? 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. Do you see any other issues or problems with the auditors' work or client documentation? a. b. 2 c. Alpine Cupcakes, Inc. Audit Program Audit Year December 31, 20x2 WP Ref. # Date No, Inquiry of manAudit Procedure A. Discuss with C.S.1 management any related party transactions that would affect cash transactions and any restrictions on cash. Cs.1 B. Determine if any of the above items require AR.1 Understanding Internal controls over the sales, accounts receivable, and allowance p A Interview appropriate personnel to understand the 78S onriaca AR.Lt sales, accounts receivable, and allowance processes. narrative and a flowchart. document your understanding of the internal 8. Document the interview and responses in a C. Perform a walkthrough of the process and controls. AR.2 Test internal controls over the accounts recelvable a and sales processes. A. Select a random sample of recorded sales from the nSoless RI-2.2 sales journal to test internal controls over accounts receivable and sales processes. Use attribute sampling to calculate the sample size. B. For each item in the sample, obtain the customerTES a 28103 R. 2.2-2.4 purchase order, sales order, shipping documents, and copy of the sales invoice. Reperform the client's internal control procedures by comparing the quantity, price, and dates on the customer purchase orders, approved sales orders, shipping documents, and sales invoices. C.Follow up on any exceptions or deviations noted to 7ES 2312023 AR 2.2.2.4 determine if they are internal control weaknesses and whether the client has remedied them. D. Use attribute sampling procedures to evaluate the al2sla0SAR.21 results and conclude whether the internal controls over accounts receivable and sales are operating effectively