Assume that you are responsible for developing an audit program for a manufacturing client that sells to
Question:
Assume that you are responsible for developing an audit program for a manufacturing client that sells to over 1,400 customers. You want to ensure your audit program addresses all relevant assertions for sales and accounts receivable. Address the following question in the context of the audit sales and receivables for this manufacturing client.
Required a. What is the purpose of an audit program?
b. Explain why auditors translate audit assertions into specific audit objectives when developing an audit program.
c. If you are auditing the existence and occurrence assertion, what specific audit objectives should be accomplished by developing an audit program? Explain the purpose of each audit objective.
d. If you are auditing the valuation or allocation assertion, what specific audit objectives should be accomplished by developing an audit program? Explain the purpose of each audit objective.
Step by Step Answer:
Auditing and Assurance Services An Applied Approach
ISBN: 978-0073404004
1st edition
Authors: Iris Stuart