You are to assume the role of an internal auditor working in an Audit Program, for company
Question:
You are to assume the role of an internal auditor working in an Audit Program, for company X, identify any control deficiencies that might impact your assessment of control risk from the tests of transactions in the sales journal, sales orders, shipping documents, invoices, and price list (the audit team is conducting DUAL tests, for example, tests of controls and balances for these items).
b. Explain how does the assessment of control risk impacts the extent of an auditor's substantive tests of transactions? Provide examples.
c. You are to write a memo with recommendations on internal control procedures over the sales process to be implemented to address any deficiencies and material weaknesses per The American Institute of Certified Public Accountants (AICPA) standards.
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley