Describe the test data to be created and the tests to be performed by an auditor to evaluate the accuracy of inventory receipts in the receiving department.

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Describe how the auditor documents the sales and despatch system for his audit file

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Chapter 16, Problem 1P

To determine

Describe the test data to be created and the tests to be performed by an auditor to evaluate the accuracy of inventory receipts in the receiving department.

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Describe how the auditor documents the sales and despatch system for his audit file

Identify risks for potential fraud, stealing, or information exposure by reviewing the general ledger/journal numbers. Consider the following in your response: Determine whether established security procedures are being followed. Examine roles and access to data. Determine if approval paths meet the level of security for the task. Receiving Procedures Goods are delivered directly to the requesting office. The requestor receives the goods and packing slip. After the goods or services have been received the packing slip should be signed indicating receipt of goods and scanned and emailed to accounts payable. Approval Paths: Transactions Involving Purchase Orders Accounts payable receives the appropriate documentation from the pertinent department indicating goods and services have been received. A three-way match of the purchase order, invoice, and receiving document is performed and approved by accounts payable. Once approved by accounts payable, a payment voucher is created in…

Assume that your audit partner has asked you to design detailed substantive testingprograms for the accounts receivable and sales; inventory; purchases and accountspayable; and payroll systems of Square Pharma. Your partner also asked you toincorporate all or some of the following types of tests: Specific analytical procedures,tests of detail (i.e. direct tests on balances and tests of transactions of a balance).While designing the testing programs, assume that the Tests of Control identifythe weaknesses as described in each of the following situations, but no other. Insummary:(a)Consider the control weaknesses for each subsystem as set out below; (b)Design and develop a substantive audit tests program using information fromlast three year annual reports and explain and justify your audit program in termsof audit objectives (also called 'audit assertions' )Note: The risk situations below are created for purposes of teaching and bear norelationship to events in Briscoe Group Ltd or any…