Accounting Overstated
Sales and Accounts
Receivable
This case
is designed like
the ones in this
chapter. Your assignment is
to write the “
audit approach” portion
of the case,
organized around these
sections :
Objective. Express
the objective in terms
of the facts
supposedly asserted in
financial records, accounts,
accounts , and statements.
Control. Write
a brief explanation
of desirable controls,
missing controls, and
especially the kinds
of “derivations” that
might arise from
the situation described
in the case.
Test of controls.
Write some procedures
for getting evidence
about existing controls
and especially procedures
that could discover
deviations from controls.
If there are no
controls to test,
then there are
no procedures to
perform; go to
the next section.
A “procedure” should
instruct someone about
the source (s)
of evidence to
tap and the
work to do.
Audit of
balance . Write some
procedures for getting evidence
about the existence,
completeness, valuation, ownership,
or disclosure assertions
identified in your
objective section above.
Discovery summary.
Write a short
statement about the
discovery you expect
to accomplish with
your procedures.
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