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You are the audit manager at a CPA firm. The audit senior has completed drafting an audit program for your client audit engagement. They
You are the audit manager at a CPA firm. The audit senior has completed drafting an audit program for your client audit engagement. They have asked you to review the following selected procedures from their audit program. REQUIRED: Comment on the relevance and reliability of the proposed audit evidence and procedures. Specifically: a. Identify the type of evidence that is being obtained (or the evidence-gathering procedure performed) by each of the following stated procedures. [1 mark each] b. Do the following procedures address the stated assertions? Support your answer. If not, identify the assertion that the procedure is testing. [2 marks each] c. How persuasive is the audit evidence that is being obtained? (ie: low or high) Support your answer. If the evidence is low, design an alternative evidence/procedure would you gather/perform that would be of higher persuasiveness. [2 marks each] AUDIT PROCEDURE: Account Expenses Assertion Audit procedure Completeness Select a sample of expense transactions from the general ledger and ensure each purchase invoice is supported by an authorized delivery slip and approved purchase order.
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