The following audit procedures are included in the audit program because of heightened risks of material misstatements due to fraud. (Click the icon to view the audit procedures.) Requirements For each audit procedure: a. Describe the type of fraud risk that is likely associated with the need for this audit procedure. b. Identify the related accounts likely affected by the potential fraud misstatement. c. Identify the related audit objective(s) that this procedure addresses. Requirement a. For each audit procedure select the description of the type of fraud risk that is likely associated with the need for this audit procedure. (Click the icon to view the descriptions.) The following audit procedures are included in the audit program because of heightened risks of material misstatements due to fraud. (Click the icon to view the audit procedures.) Requirements For each audit procedure: a. Describe the type of fraud risk that is likely associated with the need for this audit procedure. b. Identify the related accounts likely affected by the potential fraud misstatement. c. Identify the related audit objective(s) that this procedure addresses. 1. Use audit software to search cash disbursement master files for missing check numbers. 2. Search the accounts receivable master file for account balances with missing or unusual customer numbers (e.g., "99999"). 3. Use audit software to create a list of all credits to the repair and maintenance expense account for follow-up testing. 4. Engage an actuarial specialist to examine management's assumptions about average length of employment and average life expectancy of retirees used in pension accounting decisions. 5. Send confirmations to customers for large sales transactions made in the fourth quarter of the year to obtain customer responses about terms related to the transfer of title and ability to return merchandise. 6. Use audit software to search purchase transactions to identify any with nonstandard vendor numbers or with vendor names reflecting related parties. 7. Search sales databases for missing bill of lading numbers. 8. Use audit software to search for journal entries posted to the sales revenue account from a nonstandard source (other than the daily sales journal). A. Assets that were misappropriated may be concealed by recording purchase transactions using nonstandard, fictitious vendor numbers. B. Fictitious sales transactions may have been entered to increase sales revenue, possibly by management overriding internal controls. C. Management may have manipulated key assumptions so that expense and liability amounts would be lower. D. Sales may be fictitiously recorded before any goods were shipped. E. The client may have shipped and recorded large amounts of goods close to year end to third parties who may hold the goods on consignment or who have full rights of return. These shipments were made to record a fictitious sale and related receivable. F. There may be fictitious accounts receivable accounts included in the master file. G. There may be unrecorded cash disbursement transactions. H. The client may be removing expenditures from the expense account and capitalizing them instead. The following audit procedures are included in the audit program because of heightened risks of material misstatements due to fraud. (Click the icon to view the audit procedures.) Requirements For each audit procedure: a. Describe the type of fraud risk that is likely associated with the need for this audit procedure. b. Identify the related accounts likely affected by the potential fraud misstatement. c. Identify the related audit objective(s) that this procedure addresses. Requirement a. For each audit procedure select the description of the type of fraud risk that is likely associated with the need for this audit procedure. (Click the icon to view the descriptions.) The following audit procedures are included in the audit program because of heightened risks of material misstatements due to fraud. (Click the icon to view the audit procedures.) Requirements For each audit procedure: a. Describe the type of fraud risk that is likely associated with the need for this audit procedure. b. Identify the related accounts likely affected by the potential fraud misstatement. c. Identify the related audit objective(s) that this procedure addresses. 1. Use audit software to search cash disbursement master files for missing check numbers. 2. Search the accounts receivable master file for account balances with missing or unusual customer numbers (e.g., "99999"). 3. Use audit software to create a list of all credits to the repair and maintenance expense account for follow-up testing. 4. Engage an actuarial specialist to examine management's assumptions about average length of employment and average life expectancy of retirees used in pension accounting decisions. 5. Send confirmations to customers for large sales transactions made in the fourth quarter of the year to obtain customer responses about terms related to the transfer of title and ability to return merchandise. 6. Use audit software to search purchase transactions to identify any with nonstandard vendor numbers or with vendor names reflecting related parties. 7. Search sales databases for missing bill of lading numbers. 8. Use audit software to search for journal entries posted to the sales revenue account from a nonstandard source (other than the daily sales journal). A. Assets that were misappropriated may be concealed by recording purchase transactions using nonstandard, fictitious vendor numbers. B. Fictitious sales transactions may have been entered to increase sales revenue, possibly by management overriding internal controls. C. Management may have manipulated key assumptions so that expense and liability amounts would be lower. D. Sales may be fictitiously recorded before any goods were shipped. E. The client may have shipped and recorded large amounts of goods close to year end to third parties who may hold the goods on consignment or who have full rights of return. These shipments were made to record a fictitious sale and related receivable. F. There may be fictitious accounts receivable accounts included in the master file. G. There may be unrecorded cash disbursement transactions. H. The client may be removing expenditures from the expense account and capitalizing them instead