{"id":183894,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/effective-audit-procedure"},"modified":"2018-10-24T09:07:10","modified_gmt":"2018-10-24T09:07:10","slug":"effective-audit-procedure","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/effective-audit-procedure\/","title":{"rendered":"Effective audit procedure"},"content":{"rendered":"
    \n
  1. apply theoretical accounting knowledge and skills to solve non-routine accounting problems<\/li>\n<\/ol>\n

    to the level of threshold learning outcomes for auditing through assessment tasks;<\/p>\n

      \n
    1. understand and apply the various auditing standards and procedures in the conduct of an<\/li>\n<\/ol>\n

      audit;<\/p>\n

        \n
      1. demonstrate and apply technical skills in auditing techniques and judgement skills required<\/li>\n<\/ol>\n

        of an accounting professional engaged in audit;<\/p>\n

          \n
        1. demonstrate an understanding of the audit process, beginning with the planning phase,<\/li>\n<\/ol>\n

          through the documentation stages, to the testing, evaluation and reporting stages;<\/p>\n

            \n
          1. understand and apply the various auditing standards and procedures in the conduct of an<\/li>\n<\/ol>\n

            audit;<\/p>\n

              \n
            1. understand the principles and application of audit sampling techniques; and<\/li>\n
            2. understand and apply the concepts of internal controls and audit testing procedures.<\/li>\n<\/ol>\n

              This assignment consists of FIVE (5) parts<\/strong><\/p>\n

              Background<\/strong><\/p>\n

              SEQ Supply Company Ltd (SEQ Ltd) is a medium-sized distributor of IT hardware supplies. It has been<\/p>\n

              a client of yours for several years and has instituted excellent internal controls for sales at your<\/p>\n

              recommendation.<\/p>\n

               <\/p>\n

              In providing control over shipments, SEQ Ltd has pre-numbered \u201cwarehouse removal slips\u201d that are<\/p>\n

              used for every sale.  It is company policy never to remove goods from the warehouse without an<\/p>\n

              authorised warehouse removal slip.  After shipment, two copies of the warehouse removal slip are<\/p>\n

              sent to billing for the computerised preparation of a sales invoice. One copy is stapled to the<\/p>\n

              duplicate copy of a pre-numbered sales invoice, and the other copy is filed numerically. In some<\/p>\n

              cases, more than one warehouse removal slip is used for billing one sales invoice.<\/p>\n

               <\/p>\n

              In the audit of sales, one of the main concerns is the effectiveness of the controls in ensuring that all<\/p>\n

              shipments are billed. You have decided to use audit sampling in testing internal controls.<\/p>\n

              Required:<\/strong><\/p>\n

              a) Describe what is meant by a \u201csampling unit\u201d. (10 marks)<\/p>\n

              b) State an effective audit procedure for testing the possibility of omitted sales for SEQ Ltd. What is<\/p>\n

              the sampling unit? (5 marks)<\/p>\n

               <\/p>\n

                \n
              1. c) State an effective audit procedure for verifying the existence of recorded sales for SEQ Ltd. What<\/li>\n<\/ol>\n

                is the sampling unit? (5 marks)<\/p>\n

                 <\/p>\n

                  \n
                1. d) Explain why the sampling unit for testing the possibility of omitted sales might differ from the<\/li>\n<\/ol>\n

                  sampling unit for verifying the existence of recorded sales. (10 marks)<\/p>\n

                   <\/p>\n

                    \n
                  1. e) Margorie Smith, an accounting graduate and junior member of your audit team for SEQ Ltd,<\/li>\n<\/ol>\n

                    performed tests of controls and substantive tests of transactions of sales for the month of<\/p>\n

                    September in an audit of SEQ Ltd\u2019s financial statements for the year ended 30 June 2015.  Based<\/p>\n

                    on the excellent results of both the tests of controls and the substantve tests of transactions, she<\/p>\n

                    decided to significantly reduce her substantive tests of details of balances at year end.  Evaluate<\/p>\n

                    this decision. (70 marks).<\/p>\n

                     <\/p>\n

                     <\/p>\n

                     <\/p>\n","protected":false},"excerpt":{"rendered":"

                    apply theoretical accounting knowledge and skills to solve non-routine accounting problems to the level of threshold learning outcomes for auditing through assessment tasks; understand and apply the various auditing standards and procedures in the conduct of an audit; demonstrate and Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-183894","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/183894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=183894"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/183894\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=183894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=183894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=183894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}