Question
Susan Harris is a new assistant auditor with the public accounting firm of Sparks, Watts, and Wilcox, CPAs. On her third audit assignment, Harris examined
Susan Harris is a new assistant
auditor with the public accounting
firm of Sparks, Watts, and Wilcox,
CPAs. On her third audit
assignment, Harris examined the
documentation underlying 60
disbursements as a test of controls
over purchasing, receiving,
vouchers payable, and cash
disbursement procedures. In the
process, she found five
disbursements for the purchase of
materials with no receiving reports
in the documentation. She noted the
exceptions in her working papers
and called them to the attention of
the senior auditor. Relying on prior
experience with the client, the
senior auditor disregarded Harris's
comments, and nothing further was
done about the exceptions.
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