Auditing Cases, An Interactive Learning Approach, Seventh Edition.

Oilfields-R-Us, Inc. Evaluation of Management Review Controls

[2] Evaluate the design effectiveness of the Company's MRC over the allowance for doubtful accounts provided in Part B by answering questions [a] through [f]. [a] Does the control, as currently designed, address the control's objective and address the related risk of material misstatement? Yes No Please briefly explain your answer. [b] Is the control, as currently designed, sufficiently precise? Factors to consider include the appropriateness of expectations, level of aggregation, and criteria for identifying and investigating potential material misstatements. Yes No Please briefly explain your answer. [C] Does the control, as currently designed, include steps involved in identifying, investigating, and resolving deviations? Yes No Please briefly explain your answer. [d] Is the control, as currently designed, performed by individuals with sufficient competence and authority? Yes __ No___ Please briefly explain your answer. [e] Is the control, as currently designed, performed frequently enough to prevent or detect material misstatements? Yes No Please briefly explain your answer. [f] Does the control, as currently designed, ensure the completeness and accuracy of information included in the report? Yes No Please briefly explain your