Audit Program Design Part Iii

audited account Program Design Part III
Donna Robinson
ACC/546
August 6, 2012



Audit Program Design Part III
The inventory account is unrivaled of the largest accounts on a pecuniary statement; it can makes corporeal take holds difficult; and it is one of the most time consuming image of an audit, according to Arens, Elder, & Beasley. The amount of bullion flowing into and out of and the cash account is many times larger than any other(a) assets. This makes cash highly susceptible to theft. As such, Anderson, Olds, and Watershed (AOW) allow for focus on designing tests of controls, access the control risk, essential tests of transactions, analytical procedures, and test the details of balances in the inventory cycle, storage warehouse cycle, and cash cycle at Apollo Shoes, Inc (Arens, Elder, & Beasley, 2012).
The purpose and everywhereall accusative to auditing the inventory and warehouse cycle as well as the cash cycle is to provide assurance to the stakeholders and stockholders of the company that the financial statements are fairly account for raw materials, work-in process, blameless goods inventory, cost of goods sold. To ensure the company financial statements are presented fairly, AOW ordain obtain an understanding of the industrial in which the business operates.



The figure of evidence Anderson, Olds, and Watershed requires are documentations, inquiries of the client analytical procedures, observation, reperformance, recalculation, forcible examination and confirmation (Arens, Elder, & Beasley, 2012). Below is Illustration 1, an internal control questionnaire to assist auditors.







Apollo Cash Handling Questionnaire
Illustration 1
QuestionYesNoN/AComments
An essential element of control over cash is segregating among employees the duties of cash handling, reconciling, and maintaining accounting records.
When receiving payments by ship, is a mail log maintained by hand in ink?
Does someone independent of the cash receipts process jell the mail log?...If you want to get a salutary essay, order it on our website: Orderessay



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