Mo has been assigned to the audit of Aurora Landscaping Co. Ltd, a new client. His job is to meet each one of the department managers in payroll, accounts receivable and payable. Mo must determine and document how each one of these systems of internal controls work. He has been given an audit program for each one of these cycles. When he arrived at Aurora this morning, the first thing he did was review the planning section of the working paper file his senior had prepared. He distinctly remembers reading that his senior had concluded on a substantive approach for all cycles. He is thinking, “What a waste of time! Why do I need to document these three systems of internal control when I know that we are not going to rely on any of the controls that I expect to find?”

Required: 

Can you answer Mo’s question?

Answer rating: 100% (QA)

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