Raisa Alexseev was assigned to perform the year end audit at Vulcan Spice Mills. She had already made a preliminary risk assessment analysis and determined that the potential for fraud was high due to the significant volume of employee expenses. The controls surrounding the employee expenses were weak due to the ability of management to override the controls. Raisa decided to design an ADA to perform a substantive test on the reimbursement of employee expenses.

Instructions

Using the five-step process, formulate a substantive test for employee expenses.

Be sure to include:

The main assertions related to the employee expense account.

The data Raisa will require to perform the substantive test.

The technique Raisa should use to perform this substantive test.