Arne Adams, the audit senior, is reviewing the working papers written by the audit staff on...

 

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Arne Adams, the audit senior, is reviewing the working papers written by the audit staff on the audit of Virginia Creepers, a garden nursery and retailer of garden accessories. Arne reads the following description of the results of testing of inventory controls written by the audit staff member: The inventory manager advises that no changes have been made to the inventory programs during the current fiscal year. There are no documents on file authorizing program changes, so I conclude the inventory manager's statement is true. The inventory manager also advises that management did not attempt to override any controls relating to inventory. There are no memoranda or emails from management on file instructing the inventory manager to go against procedures, so I conclude the inventory manager's statement is true. The audit staff member concludes that the inventory controls have not been changed or overridden during the fiscal year, so the results of the interim testing of controls can be relied upon. Instructions Initial Post In your initial post, you will be addressing the following: 1. Analysis: Examine the statements by the audit staff member. What deficiencies in the testing can you identify? 2. Evaluation: If the results of testing one control show that the control is not effective, does the auditor have to increase substantive testing? What other options are available to the auditor? Arne Adams, the audit senior, is reviewing the working papers written by the audit staff on the audit of Virginia Creepers, a garden nursery and retailer of garden accessories. Arne reads the following description of the results of testing of inventory controls written by the audit staff member: The inventory manager advises that no changes have been made to the inventory programs during the current fiscal year. There are no documents on file authorizing program changes, so I conclude the inventory manager's statement is true. The inventory manager also advises that management did not attempt to override any controls relating to inventory. There are no memoranda or emails from management on file instructing the inventory manager to go against procedures, so I conclude the inventory manager's statement is true. The audit staff member concludes that the inventory controls have not been changed or overridden during the fiscal year, so the results of the interim testing of controls can be relied upon. Instructions Initial Post In your initial post, you will be addressing the following: 1. Analysis: Examine the statements by the audit staff member. What deficiencies in the testing can you identify? 2. Evaluation: If the results of testing one control show that the control is not effective, does the auditor have to increase substantive testing? What other options are available to the auditor?

Answer rating: 100% (QA)

Required solution Ans1 As per the given data there must be following deficiencies found in the State... View the full answer