The audit of the revenue cycle accounts of Acco, Inc. has been planned with a low preliminary
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Discuss the type of financial statement misstatement that may result, the assertion(s) affected, and the effect on the nature, timing, and/or extent of related substantive tests. Each type of failure should be considered independently from the others.
a. No evidence that price and quantity on the invoice were compared with the supporting documents.
b. Failure to approve customer credit before shipping the merchandise on open account.
c. Recording sales before they were shipped.
d. Recording sales several days after they should have been recorded.
e. Several sales were recorded before and several after they should have been recorded.
f. Lack of customer orders. Items were shipped.
g. Lack of shipping documents; customer order was found.
h. Invoice price was wrong.
i. Quantity shipped differed from the quantity billed.
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Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
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