Examine the working paper for Vandervoort Company Ltd, shown in Figure 6.10.

a. List the deficiencies in the working paper.

b. For each deficiency, state how the audit schedule could be improved.

c. Prepare an improved audit schedule, using electronic spreadsheet software. Include an indication of the audit work done as well as the analysis of the client data (instructor's option).

x = Tested
py = Agrees with prior year's audit schedules.
tb = Agrees with working trial balance.
# = Agrees with miscellaneous income analysis in operations w/p.
a/r = Agrees with A/R lead schedule.

Transcribed Image Text:

Working paper for Van dervoort Company Ltd Vandervoort Company A/C # 110-Notes Receivable 30/6/X4 Schedule N1 Date Prepared by JD 217X4 Approved by PP 15/8/X4 MARTIN PETERSON 12/11/X3 Demand Paid APEX CO Date made 15/12/x3 Date due Paid to date Face amount $5 000 XS3 591 x $13 180 Interest rate Value of security None Note Receivable 30/6/X3 bal. Additions Payments 30/6/04 bal. Current Long-term Total end. bal S3 000 a Interest Receivable 30/6/X3 bal. Interest earned Interest received 30/6/X4 bal. AJAX, INC. 21/5/X3 Demand Paid JJ. CO 1/5/X3 S200/mo. 30/6/X4 P. SMITH 26/1/X4 $1000/mo 30/3/X4 TENT CO 3/3/X4 $400/mo 30/5/X4 15/12/X4 None x $25 000 x S2100 x $12 000 x 6% None $24 000 $50 000 None $10 000 $4000 ру S3 591 ру $12780 ру $2100 ру $0 12000 25000 1 000) x $(3 591) x 2 400) x (5 000) x 2100) x(1600) x S3 000 S3 000 $10 380 S2 400 7 980 S10 380 $20 000 $12 000 8 000 S0 S10 400 4 800 5 600 S10 400 TOTALS $22 200 tb 21 580 tb 20 000 a $43 780 tb $104 ру 175 x SO ру 102 x (102) x 24 Py 577 x (601) X $0 py 105 X (105) x $0 162 x 1589 # (108) x 1116) $54 $128 0 $279 468 X (200)x $268 $0 S0 601 a/r