7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of VandervoortCompany and are to review the audit schedule shown below.a. List the deficiencies in the audit schedule.b. For each deficiency, state how the audit schedule could be improved.c. Prepare an improved audit schedule, using an electronic spreadsheet software pro-gram. Include an indication of the audit work done as well as the analysis of the clientdata (instructor's option).RequiredVandervoort CompanyA/C # 110-Notes ReceivableSchedulePrepared by JDApproved by PP 2-15-17N-I Date1-21-1712-31-16MARTIN-APEX CO.AJAX, INC.JJ.CO.P. SMITHPETERSONTENT CO.Date madeDate duePaid to date6/15/156/15/1711/21/15DemandPaid$3,59111/1/15$200/mo.12/31/16x $ 13,1807/26/16$1,000/mo.9/30/1625,0005%50,0005/12/15Demand9/3/16$400/mo.11/30/16x $ 12,000 xNonePaidFace amount$5,000$2,100Interest rate5%5%5%5%6%Value of securityNoneNone$ 24,000None$ 10,000Note Receivable:12/31/15 bal.Additions$4,000 py$ 3,591 py $ 12,780 py $$2,100 py $25,00012,000Payments(1,000)$(3,591)(2,400) x$ 10,380(5,000) x(2,100)2$(1,600) x$ 10,40012/31/16 bal.$3,000$02$20,000ТОTALSCurrent$3,0002,4007,98012,0008,000$ 4,800$22,2005,60021,580$ 10,400 @ $43,780tbtbLong-termTotal end. bal.$3,00024$ 10,380@ $20,000 @2$tbInterest Receivable:12/31/15 bal.Interest earnedInterest received12/31/16 bal.$ 104 py2$0 py $24 py $2$0 ру105$0$ 128175X1025774681621,589(102)24(601)2$X(200) х(105)$ 0(108) x(1,116)$ 601 a/r$ 2792$2682$54X= Testedpy = Agrees with prior year's audit schedules.tb = Agrees with working trial balance.#= Agrees with miscellaneous income analysis in operations w/p.alr = Agrees with A/R lead schedule.Chapter 7/ AUDIT EVIDENCE257

Auditing is the verification of accuracy and correctness of books of accounts by independent persons…

7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of Vandervoort Company and are to review the audit schedule shown below. a. List the deficiencies in the audit schedule. b. For each deficiency, state how the audit schedule could be improved. c. Prepare an improved audit schedule, using an electronic spreadsheet software pro- gram. Include an indication of the audit work done as well as the analysis of the client data (instructor's option).

7-36 (OBJECTIVES 7-7, 7-8) You are the in-charge auditor on the audit of Vandervoort Company and are to review the audit schedule shown below. a. List the deficiencies in the audit schedule. b. For each deficiency, state how the audit schedule could be improved. c. Prepare an improved audit schedule, using an electronic spreadsheet software pro- gram. Include an indication of the audit work done as well as the analysis of the client data (instructor's option).

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 35RQSC

See similar textbooks

Similar questions

Refer to Exhibit 2.5 and answer the following questions. a. (Sections 101, 104, and 105) How does the establishment and operation of the PCAOB help to ensure quality external audits? How will audit firm inspections and investigations by the PCAOB help ensure high audit quality? b. (Sections 201-203) How do Sections 201-203 address audit ()r independence concerns? c. (Section 206) What is a cooling-off period, and how does it address auditor independence concerns? d. (Section 301) How do the audit committee requirements help ensure effective corporate governance? e. (Sections 302 and 906) How do the officer certification requirements help to address the risk of fraud in publicly traded organizations? What is the likelihood that a CFO who is committing fraudulent financial reporting would sign the certification falsely, and what are your reactions to that possibility? f. (Section 401) How does this section relate to the Enron fraud? g. (Section 404) How do the management assessment and audit or attestation of internal controls contained in this section help to address the risk of fraud in publicly traded organizations? h. (Section 407) Why is it important that at least one member of the audit committee be a financial expert? What are the financial reporting implications if the audit committee does not have any individuals serving on it who possess financial expertise? i. (Section 802) How does this section relate to the Enron fraud?
Comprehensive Problems (covers all content) Problem 11: List the Summary of the Audit Process in correct phases (from beginning to end of audit): Perform analytical procedures and tests of details of balances Complete the audit and issue and audit report Plan and design an audit approach Perform tests of controls and substantive tests of transactions Phase 1 ______ Phase 2 ________ Phase 3 ________ Phase 4 ________ Give an example of each step.
defines and describes each audit procedure 1. Physical examination 2.Confirmation 3.Inspection 4.Analytical procedures 5. Inquiry/interrogation 6.Recalculation 7.Perform again (reperform) 8.Observation
Please access PCAOB Auditing Standard No. 12 "Identifying and Assessing Risks of Material Misstatements" (pcaobus.org). Use this standard to answer each of the questions below. For each answer, document the paragraph(s) in AS No. 12 supporting your answer. a. What types of information does AS No. 12 suggest the auditor should consider when obtaining an understanding of the company and its environment? b. What types of performance measurements might affect the risk of material misstatement? c. What specific issues should be included in the discussion among engagement team members regarding the risk of material misstatement? d. What factors should the auditor consider to determine if a risk is a "significant risk"? e. What guidance is provided about revising the risk assessment as the audit continues?
Management Assertions. Your audit manager has asked you to explain the PCAOB assertions by using an account on the balance sheet at your audit client. For the accounts receivable account, please define each of the PCAOB assertions, using the accounts receivableaccount as a way to illustrate each assertion. You are encouraged to reference Exhibit 1.5 tohelp you answer this question
To obtain an understanding of a continuing client in planning an audit, an auditor most liky would; A. Perform test of details of transactions and balances B. Read internal audit reports. C. Read Specialized industry journals. D. Reevaluate the risks of material misstatement
Please see attached screenshot. Thank you!!!!
Listed in the table below are some common audit procedures. For each procedure below: Identify whether it is a test of control (TOC), substantive test of transaction (STOT), analytical procedure (AP) or a test of details of balances (TODOB). Write your answer in the 2nd column of the table below. State one audit objective that is being satisfied. Write your answer in the 3rd column of the table below.
You have been asked to prepare a presentation to new recruits in your audit firm on the use of working papers. You have also been asked to include in your presentation a distinction between files held in permanent and current files, the design and use of audit programmes and the purpose of an audit trail with respect to the conduct of the audit. Required a) State four matters you would expect to find recorded in working papers in the permanent audit file and explain their purpose. b) Explain the design and use of audit programmes. c) Explain the importance of recording details of the actual evidence examined in the course of the audit on which the conclusions are drawn. d) Post your response to the discussion forum and engage two of your peers in a critically constructive dialogue about their responses.
Compile a full set of notes which you will use to prepare for the training session that you are required to present. The notes should include: a) The steps a professional accountant should take in applying the conceptual framework approach. b) An explanation of the five categories of threats suggested by the code. c) A brief description of six general safeguards in an audit firm’s work environment that will ensure that threats to compliance with the fundamental principles are addressed appropriately
1. List three reasons management may ask for an operational audit to be performed and explain how the audit program would be impacted by each of them. 2. Explain the importance of identifying risk factors and using them during the planning phase. 3. Give two examples where document inspection is a useful technique to examine operational risks and related controls. 4. Explain professional skepticism and why it is important for all auditors. 5. Explain the acronym CCCER. 6. What are the defining characteristics of persuasive audit evidence? 7. What are the key characteristics of well prepared working papers? 8. What do internal auditors mean when they refer to the nature, extent, and timing of audit procedures? 9. What information should be included in a well designed final assurance engagement communication? 10. What actions regarding assurance engagement observations must the internal audit function take after the final engagement communication is disseminated?
Analytical procedures are a critical part of audit work. Describe at least three different analytical procedures and explain how to perform each. Specify what the results will reveal about the client.