Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Requirement b. Identify the related accounts likely affected by the potential fraud misstatement Abbreviations used AP Accounts payable, AR Accounts receivable CGS = Cost of

image text in transcribed
image text in transcribed
Requirement b. Identify the related accounts likely affected by the potential fraud misstatement Abbreviations used AP Accounts payable, AR Accounts receivable CGS = Cost of goods sold. Find assets) Likely accounts affected by potential fraud misstatement Use audit software to search purchase transactions to identify any with nonstandard vendor numbers or with vendor names reflecting related 1. parties 2. Search sales databases for missing bill of lading numbers. Use audit software to search for journal entries posted to the sales revenue 3. account from a nonstandard source (other than the daily sales jounal) Use audit software to search cash disbursement masteries for missing 4. check numbers Search the accounts receivable master file for account balances with missing D. or unusual customer numbers (eg."9999) Use audit software to create a list of all credits to the repair and maintenance 6 expense account for follow-up testing FARA alene mine man's minne The audit procedures listed below are included in the audit program because of heightened risks of material misstatements due to fraud. Read the requirements nonstandara vendor numbers or with vendor names terecung related 1. parties 2. Search sales databases for missing bill of lading numbers. Use audit software to search for journal entries posted to the sales revenue 3. account from a nonstandard source (other than the daily sales journal). Use audit software to search cash disbursement master files for missing 4. check numbers. Search the accounts receivable master file for account balances with missing 5. or unusual customer numbers (e.g., "99999"). Use audit software to create a list of all credits to the repair and maintenance 6. expense account for follow-up testing. Engage an actuarial specialist to examine management's assumptions about average length of employment and average life expectancy of retirees used in 7. pension accounting decisions. Send confirmations to customers for large sales transactions made in the fourth quarter of the year to obtain customer responses about terms related 8. to the transfer of title and ability to return merchandise

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Regulation Of The London Stock Exchange Share Trading, Fraud And Reform 1914-1945

Authors: Chris Swinson

1st Edition

0367887568, 9780367887568

More Books

Students also viewed these Accounting questions

Question

Sketch graphs of the above function. g(x) = 3x / 2x + 1 for 0 x 2.

Answered: 1 week ago