Project 2 (20%) You are recently joined R&G Audit & CO for the positions of juniorauditors. Your manager assign you the audit the financial statement of The Bargain corner Ltd for the year 2021. The Bargain corner Ltd retail clothing company, founded in Dubai in December 2020. You You have to work with your team to audit:

• Sales and Collection Cycle
• Purchasing Process.

You have all the required documents from the company:

Sales and Collection Cycle.	Sale invoices Account receivable details Journal sales List of prices and terms Cash account details
Purchasing Process.	Purchase invoices Purchase account details Account payables details Cash account details

Your superisor, provide you with the:

2. Audit Plan for Sales and Collection Cycle
4. Audit Plan for the Purchasing Process

You need to use the Custumized-Audit-Software to perform your tasks Add LINK RG & CO AUDIT

CLIENTNAME: .............................................

Period end: ..........

DATE: ...........

Test performed BY: ........

Part 1: Audit Plan for Sales and Collection Cycle

	Answer	Documentation required	Total Marks
I. SAMPLE :
Use the sales journal to select a sample of sales invoices to audit the sales and collection cycle (10 invoices).	Invoices number/id (example : INV-00001, INV-000, etc.) :..	NO	6 Marks
Justify the selection of the sample (How you select your sample? )		NO	6 Marks
FOR THE SAMPLE OF THE SELECTED SALES INVOICES YOU NEED TO VERIFY THE FOLLOWING ASSERTIONS BY PERFORMING THE REQUESTED TEST:
ASSERTIONS TO BE VERIFIED	TEST TO BE PERFORMED	Answer	Documentation required
Occurrence :	For the sample selected, trace sales transactions recorded in the sales journal, with the sales invoice.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (Upload sales journal (please track/ highlight the verified transaction with another color) + invoiced verified. You may use combine files option in PDF)	6 Marks
	For the sample selected, trace payment received from costumers in the cash and collection journal, with the selected sales invoice.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (Upload cash account (please track/ highlight the verified transaction with another color) + invoiced verified. You may use combine files option in PDF)	6 Marks
Authorization	For the sample of the sales compare the prices and terms with authorized price list.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	Yes Document your test: (Terms with authorized price list (please track/ highlight the verified price with another color) + invoiced verified. You may use combine files option in PDF)	6 Marks
Accuracy	For the sample of selected invoices recompute the mathematical accuracy.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (invoiced verified. You may use combine files option in PDF)	6 Marks
Classification	For the sample of selected sales invoices, verify that are properly classified into account receivale accounts.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (invoiced verified. You may use combine files option in PDF)	6 Marks
Evaluating the Audit Findings (Accept the account as fairly presented/ Account is not fairly presented) justify: Answer: ..	8 Marks

Part 2: Audit Plan for the Purchasing Process

	Answer	Documentation required	Total Marks
I. SAMPLE :
Use the list of purchases and select a sample of five purchase invoices to audit the Purchasing Process.	Invoices number/ id ( example : Purchase Invoice 3002 ,etc.)	No	6 Marks
Justify the selection of the sample (How you select your sample? )		NO	6 Marks
FOR THE SAMPLE OF THE SELECTED PURCHASE INVOICES YOU NEED TO VERIFY THE FOLLOWING ASSERTIONS BY PERFORMING THE REQUESTED TEST:
ASSERTIONS TO BE VERIFIED	TEST TO BE PERFORMED	Answer	Documentation required
Rights and obligations :	For the sample of selected purchase invoices, verify that are obligations of the entity (belong to the entity).	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (invoiced verified. You may use combine files option in PDF)	6 Marks
Existence	For the sample selected invoices, trace the purchase Account with the purchase invoices.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (Upload purchase journal (please track/ highlight the verified transaction with another color) + invoiced verified. You may use combine files option in PDF)	6 Marks
C. Completeness :	For the selected sample of the purchases, verify that purchases are recorded in the accounts payable.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verifiedor not)	YES Document your test: (Upload account payable (please track/ highlight the verified transaction with another color) + invoiced verified. You may use combine files option in PDF)	Marks
D.Accuracy	For the sample of selected invoices recompute the mathematical accuracy of vendor invoice.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (invoiced verified. You may use combine files option in PDF)	Marks
Classification	For the sample of selected purchase invoices, verify that are properly classified into account payable account.	Test conclusion (is there any mistatement/ Number of mistatements if it exist/ does the assertion verified or not)	YES Document your test: (Upload account payable (please track/ highlight the verified transaction with another color) + invoiced verified. You may use combine files option in PDF)	6 Marks
Evaluating the Audit Findings (Accept the account as fairly presented/ Account is not fairly presented) justify: Answer:..	8 Marks