Question: Discuss the audit test procedure Observation and how such a procedure would be used in an audit of a Payroll or Accounts Payable process. What

Discuss the audit test procedure "Observation" and how such a procedure would be used in an audit of a Payroll or Accounts Payable process. What results or conclusions, if any, can you arrive at, if you have found no exceptions or errors.

B. Design & Operating Effectiveness:

1. For audits of a business process;

a) Which of the following should be performed first: test of operating effectiveness (TOE) or test of design adequacy (TOD)? Please provide your reasoning.

b) If you find exceptions or errors in either TOE or TOD, what should steps should the auditor take?

2. Is evaluating control design more challenging than evaluating operating effectiveness? Include your arguments for your position.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

A Observation in Audit Test Procedure Observation is an audit test procedure that involves physically observing an activity being performed by the ent... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash $ 78,000 Liabilities $ 52,500 Noncash assets 150,000 Delphine, capital 67,800 Xavier, capital 65,000 Olivier, capital...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Case Study: Quick Fix Dental Practice Technology requirements Application must be built using Visual Studio 2019 or Visual Studio 2017, professional or enterprise. The community edition is not...

A. Manual Audit Test Procedures: Discuss the audit test procedure "Observation" and how such a procedure would be used in an audit of a Payroll or Accounts Payable process. What results or...

A. Manual Audit Test Procedures Select one of the manual audit test procedures (inquiry, observation, examination of evidence, re-performance, or CAAT) and discuss how such a procedure would be used...

Select Analytical Procedures as the audit test procedures listed in the textbook and discuss how such a procedure would be used in an audit of a Payroll or Accounts Payable process. What results or...

ACC 640 9-1 Scenario The auditing team of your CPA firm has performed an audit engagement for Keystone, which consists of testing financial statements, internal controls, and other factors that could...

"PCAOB Inspection Reports for KPMG" is an excellent topic. Summarize 3 reports - 2010, 2012 & 2014.At least 6 references are needed - 3 academic & 3 practitioner (short articles).Please follow the...

Write an engagement letter of no more than 1,050 words for a Section 404 audit of Apollo Shoes. Assume that Apollo Shoes is a publicly traded company for which the SEC requires an audit of internal...

Business memorelating to Audit. All questions and materials needed are attached. Please, ensure you are familiar with auditing before accepting this project. Thank you. THE ACCOUNTING REVIEW Vol. 90,...

Match the vocabulary word with the proper definition. Definitions 1. the smallest type of blood vessel 2. the part of the circulatory system that carries blood between the heart and body 3. diseases...

Carrico Advertising Inc. performs advertising services for several Fortune 500 companies. The following information describes Carricos activities during 2011. a. At the beginning of 2011, customers...

Focusing on customers has not always been the hallmark of strategic planning. in fact, in the early twentieth century, firms tended to focus strictly on these two attributes

Aulman Inc. has a number of divisions, including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motels located along major highways. Each year, the...

What documentation should an auditor inspect when a client has paid off a bank note? How could an employee defraud the company if the bank note has no indication of being paid?

What are some specific transactions that an auditor would expect to be approved by the board of directors? How would it affect the audit if these transactions were not required to be approved by the...

Cecil C. Seymour is a 64-year-old widower. He had income for 2015 as follows: Pension from former employer......................................................... $39,850 Interest income from Alto...

Cecil C. Seymour is a 64-year-old widower. He had income for 2016 as follows: Pension from former employer ................................................................$39,850 Interest income from...

a bakery sells muffins for $2.10 and cookies for $1.40. if the total revenue on cookies and muffins for the week is $273.00 and the bakery makes $63.00 more on cookies than it does on muffins, find...

Why do most governments and not-for-prots budget on a cash or near-cash basis even though the cash basis does not capture the full economic costs of the activities in which they engage?

What is the primary deciency of discrete presentation as it must be applied in government-wide statements?

For each of the following situations, indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briey justify your response...

T F You cannot become psychologically dependent on a drug without also becoming physically dependent on it. (p. 295)

T F Even moderate use of alcohol increases the risk of heart attacks. (p. 303)

8.1 Identify the major types of substancerelated disorders in the DSM-5 and describe their general features.