Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Your firm Temasek, Smith & Partridge are currently auditing the financial accounts of Riddell Ltd for the year ending 30 June 2021. You are the

Your firm Temasek, Smith & Partridge are currently auditing the financial accounts of Riddell Ltd for the year ending 30 June 2021. You are the Audit Manager on this engagement and one of your new graduates has performed the following audit procedures about the sales and collection process of Riddell Ltd, as follows: 1. Examined a sample of shipping documents to determine whether each document has a sales invoice number included on it. 2. Added the columns on the aged trial balance and compared it to the total noted on the general ledger. 3. Observed whether the financial accountant makes an independent comparison of the total in the general ledger with the trial balance of accounts receivable. 4. Examined a sample of customer orders to see whether each order has a credit authorisation. 5. Compared the date on a sample of shipping documents a few days before and after the balance sheet date with related sales journal transactions. 6. Computed the ratio of the provision for doubtful debts divided by accounts receivable and compared it with previous years. 7. Examine a sample of non-cash credit entries in the accounts receivable master file to determine whether the internal auditor has initialled each one. Required: For each audit procedure stated above from 1) 7), identify the applicable type of audit evidence, type of test and explain the purpose of the audit procedure. Please use the following table to complete your responses

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

Economic Influences On The Development Of Accounting In Firms

Authors: George J. Staubus

1st Edition

0367721325, 9780367721329

More Books

Students also viewed these Accounting questions

Question

Solve the following 1,4 3 2TT 5x- 1+ (15 x) dx 5X

Answered: 1 week ago