NETFLIX (NFLX) PROJECT 4: Substantive Tests of Significant Accounts-Revenue Cycle Objectives: 1. Evaluate audit Risk (AR)...

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NETFLIX (NFLX) PROJECT 4: Substantive Tests of Significant Accounts-Revenue Cycle Objectives: 1. Evaluate audit Risk (AR) upon completion of test of control results. 2. Develop Substantive tests for Revenues. 3. Document the test, timing, and extent using the AR risk sheet. Scenario Results of Test of Controls • · Upon completion of test of controls, the audit team decided the internal controls are n reliable. CR is revised to HIGH. Adjust and revise DR based on Control Risk for significant accounts-Revenue. Adjust AR based on the revised Control Risk and DR to the significant account-Revenue Accomplish the above adjustments/revisions to AR below the previous work made on R and Cost of Revenues AR levels. Shade the previous work light grey. Procedures and Analysis: CR 1. Develop substantive tests for each of the assertions for Revenues: Resources: a. Substantive analytical procedures for Revenue and if needed related account(s). b. Substantive test of details for revenue and if needed related accounts(s). · NFLX annual report data set NFLX annual report 2021, PDF, for management text components-MDA. Audit Process Map-regular reminder of "where you are at" in the process; what happen before, your current state, and what is up ahead. Revenue cycle process and IC map/flowchart Sections to Complete: ° o Test of Controls sheet that includes substantive test column. Add a substantive te column and name it "Substantive Test of Details" and rename the original Substan Tests column "Substantive Analytical Procedures". Audit Risk: revise AR after test of controls results. NETFLIX (NFLX) PROJECT 4: Substantive Tests of Significant Accounts-Revenue Cycle Objectives: 1. Evaluate audit Risk (AR) upon completion of test of control results. 2. Develop Substantive tests for Revenues. 3. Document the test, timing, and extent using the AR risk sheet. Scenario Results of Test of Controls • · Upon completion of test of controls, the audit team decided the internal controls are n reliable. CR is revised to HIGH. Adjust and revise DR based on Control Risk for significant accounts-Revenue. Adjust AR based on the revised Control Risk and DR to the significant account-Revenue Accomplish the above adjustments/revisions to AR below the previous work made on R and Cost of Revenues AR levels. Shade the previous work light grey. Procedures and Analysis: CR 1. Develop substantive tests for each of the assertions for Revenues: Resources: a. Substantive analytical procedures for Revenue and if needed related account(s). b. Substantive test of details for revenue and if needed related accounts(s). · NFLX annual report data set NFLX annual report 2021, PDF, for management text components-MDA. Audit Process Map-regular reminder of "where you are at" in the process; what happen before, your current state, and what is up ahead. Revenue cycle process and IC map/flowchart Sections to Complete: ° o Test of Controls sheet that includes substantive test column. Add a substantive te column and name it "Substantive Test of Details" and rename the original Substan Tests column "Substantive Analytical Procedures". Audit Risk: revise AR after test of controls results.

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