. M. Jack, CPA, is the auditor of Jill Corporation. Jack plans to follow last year's...
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. M. Jack, CPA, is the auditor of Jill Corporation. Jack plans to follow last year's work papers in selecting accounts payable to be confirmed. Confirmations were mailed to 50 of Jill's 200 suppliers. The sample was designed to select accounts with the largest balances. Jack and Jill spent a lot of time reconciling minor differences between the confirmation amounts and the accounts payable trial balance. Required: Do you believe Jack should use the same sample design for accounts payable confirmations this year? If not, what suggestions can you give to improve the design? . M. Jack, CPA, is the auditor of Jill Corporation. Jack plans to follow last year's work papers in selecting accounts payable to be confirmed. Confirmations were mailed to 50 of Jill's 200 suppliers. The sample was designed to select accounts with the largest balances. Jack and Jill spent a lot of time reconciling minor differences between the confirmation amounts and the accounts payable trial balance. Required: Do you believe Jack should use the same sample design for accounts payable confirmations this year? If not, what suggestions can you give to improve the design?
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Because of the concern for understatement of liabilities auditors are mo... View the full answer
Related Book For
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley
Posted Date:
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