SELECTION OF AUDIT TESTS AND RISK ASSESSMENT FOR THE EXPENDITURE CYCLE (ACQUISITIONS AND CASH DISBURSEMENTS): The Winery at Chateau Americana
KEY FACTS
• The audit manager, Mikel Frucella, reviewed CA’s control environment, risk assessment policies, and monitoring system and assessed them as strong.
• The audit manager, Mikel Frucella, determined that tolerable misstatement should be $40,000 for the expenditure cycle.
• The audit manager, Mikel Frucella, determined that acceptable audit risk should be low
• A staff auditor, Julia Granger, assessed inherent risk related to purchases, cash disbursements, and accounts payable and prepared the inherent risk section of the audit risk matrix (referenced in the top right-hand corner as E-180 and E-181).
• Documents and records used to record purchase transactions include purchase requisition, purchase order, receiving report, vendor invoice, standardized chart of accounts, purchases journal, vendor ledgers file, and general ledger.
• Documents and records used with respect to cash disbursement transactions include voucher cover, signed check, bank statement, standardized chart of accounts, cash disbursements journal, vendor ledgers file, and general ledger.
• Receiving reports are only generated for production and PP&E purchases.
• Purchase orders are not generated for recurring services, such as utilities.
1.) Indicate whether the test provides Strong (S), Moderate (M), or Weak (W) evidence for the specific management assertion.
2.) Indicate whether the test provides Strong (S), Moderate (M), or Weak (W) evidence for the specific management assertion.
3.) Indicate whether the test provides Strong (S), Moderate (M), or Weak (W) evidence for the specific management assertion.
4.) Indicate whether the test provides Strong (S), Moderate (M), or Weak (W) evidence for the specific management assertion
5.) Indicate whether the test provides Strong (S), Moderate (M), or Weak (W) evidence for the specific management assertion.
6.) Indicate whether the test provides Strong (S), Moderate (M), or Weak (W) evidence for the specific management assertion.
1.)
2.)
3.)
.png)
4.)
5.)
6.)
You might also like to view...
Unlike other currencies, bitcoin is not controlled by a single government entity, such as the U.S. Treasury
Indicate whether the statement is true or false
Which of the following types of diversity is based on having employees with different educational and/or professional backgrounds?
a. Traits and value diversity b. Task-related diversity c. Demographic diversity d. Geographic diversity
Which of the following is true of the liabilities of a franchisor and a franchisee?
A) The franchisor is not liable for any tort arising out of the franchise. B) Both franchisee and franchisor are jointly liable for torts committed by either. C) Franchisees are only liable on their own contracts. D) Franchisors are always liable for the torts of the franchisees.
When a firm’s inventory falls to a predetermined level, a new order is placed to replenish inventory. This predetermined level is known as the ______.
A. reorder point B. replenishment point C. stock-out point D. safety stock point