Jones and Smith (JS), CPAs are conducting an audit of Marty's Gentlemen's Club (MGC). Upon inspection of certain invoices received by MGC (in pdf format), JS notices some errors that are not typical of a business invoice (e.g., the math doesn't add up on one invoice, a street name is misspelled on another invoice).  Further, the invoices which have the errors are for large dollar amounts.

Thus, two questions:

 

1. According to SAS 142, does Jones have a responsibility to authenticate the validity of the invoices?  

2. If Jones were to authenticate the invoices, what types of audit procedures might Jones use to do so?  

Answer rating: 100% (QA)

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