11. The following are misstatements that can occur in Michigan Energy Manufacturing Company: (a) A shipment...

 

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11. The following are misstatements that can occur in Michigan Energy Manufacturing Company: (a) A shipment made in the subsequent period is recorded as a current period sale. (b) The supervisor submits a fraudulent time card for a former employee each week and delivers the related payroll check to the employee's house on the way home from work. They split the amount of the paycheck. Required: For each misstatement, identify control activities that were absent and suggest the control(s) that may have prevented and detected the misstatement? Determine the audit procedure(s) to detect the misstatement 12. When auditing Client SilverStripe, an auditor performed the following procedures: (1) Obtain vendors' statements directly from vendors and reconcile them to the listing of accounts payable. (ii) Review board of director meeting minutes to verify the salary for the chief executive officer. Required: For each procedure, identify the type of audit evidence? The type of audit test being performed? Audit objective(s) being satisfied? Potential misstatement could be detected? And briefly explain your answer. 11. The following are misstatements that can occur in Michigan Energy Manufacturing Company: (a) A shipment made in the subsequent period is recorded as a current period sale. (b) The supervisor submits a fraudulent time card for a former employee each week and delivers the related payroll check to the employee's house on the way home from work. They split the amount of the paycheck. Required: For each misstatement, identify control activities that were absent and suggest the control(s) that may have prevented and detected the misstatement? Determine the audit procedure(s) to detect the misstatement 12. When auditing Client SilverStripe, an auditor performed the following procedures: (1) Obtain vendors' statements directly from vendors and reconcile them to the listing of accounts payable. (ii) Review board of director meeting minutes to verify the salary for the chief executive officer. Required: For each procedure, identify the type of audit evidence? The type of audit test being performed? Audit objective(s) being satisfied? Potential misstatement could be detected? And briefly explain your answer.

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11 a A shipment made in the subsequent period is recorded as a current period sale This misstatement ... View the full answer