As a substantive test, it involves the examination of assets that have a tangible existence, such as cash or equipment physical examination is an activity used in the observation of inventories this activity is a generally accepted auditing procedure used as a substantive test. Substantive procedures for asset irregularities substantive audit procedures or tests are essentially direct tests with the use of particular information from the accounting system and fiscal statements of a company (freedman, 2011. For more details wwwassignmentclickcomuop acc 556 week 4 learning team substantive procedures for asset irregularities check this a+ tutorial guideline at. Of controls or substantive procedures) and their type, that is, inspection, 4 audit procedures performed for the purpose of assessing risk (risk assessment procedures) are discussed in paragraphs 06 through 13 of section 314.
Because analytical procedures are substantive tests, they reduce the extent to which the auditor needs to perform detailed tests of balances, if the analytical procedure results are favorable our audit team performs analytical procedures for the entire sales and collection cycle, not just accounts receivable. Before applying substantive procedures to the details of asset and liability accounts at an interim date, the auditor should a assess the difficulty in controlling achieved audit risk for the remainder of the period. Acc 556 week 3 substantive procedures for asset irregularities you are the internal accountant at a company that is preparing for an upcoming government contract bid the management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid.
Describe the types of evidence you would look for to determine whether fraud is occurring write a business brief of no more than 1,050 words that outlines how you will use the substantive procedures discussed in weeks three and four to analyze potential schemes. Substantive procedures for cash outflow irregularities apollo shoes has recognized that there is a risk of loss due to irregularities in cash outflows, accounts payable, and payroll substantive procedures for cash outflows, accounts payable, and payroll are needed to detect irregularities in each of these. With detailed control activities and systems objectives in assessing the control risk for a specified area of the financial statements it is important to appreciate that the. As substantive procedures when their use is more effective or efficient than tests of detail that analytical procedures may be performed as substantive procedures (i timing and extent of other audit procedures (i gross profit percentages) divisions. Substantive procedures for asset irregularities student name acc 556 september 17, 2012 instructor name introduction the following will outline the procedures and steps necessary to detect irregularities that can occur in the accounts receivable, inventory and fixed assets of apollo shoes.
(b) assuming that the substantive approach is adopted, list four audit procedures that should be performed in addressing the existence assertion of investment properties (4 marks) (c) the company adopts the fair value model for the accounting of the investment properties. Essay on auditing mautz and sharaf presented an interesting idea about the postulates of auditing in their study, they stated that the postulates were the basis, the assumptions, and the starting point for building the auditing structure. Substantive analytic procedures to analyse the evidence obtained during the substantive testing of account balances final analytic procedures analysis of all evidence to support the audit con. Substantive procedures for cash outflow irregularities substantive procedures for cash outflow irregularities substantive procedures for cash outflow irregularities apollo shoes has recognized that there is a risk of loss due to irregularities in cash outflows, accounts payable, and payroll. Search results for 'acc 556 week 4 substantive procedures for asset irregularities apollo shoes' substaaantive procedures for outflow irregularities substantive procedures for cash outflow irregularities to detect irregularities in apollo shoes, an efficient audit program for the audit cycles will be needed.
Substantive test is the test of account balances to verify the correctness of the amounts they are design to identify errors and irregularities in this case misstatement of inventory identified would be considered significantly enough to require substantive testing of inventory. Substantive procedures for cash outflow irregularities substantive procedures for cash outflow irregularities apollo shoes has recognized that there is a risk of loss due to irregularities in cash outflows, accounts payable, and payroll. Audit procedures audit procedures the audit procedure is a specific order of the auditor's actions to obtain the necessary evidence at a specific audit site distinguish the following audit procedures: tests of internal controls, substantive procedures. This next phase of the auditing process for apollo shoes inc (apollo) is the designing of an audit program, which will detail substantive procedures for detecting irregularities in the accounts receivable, inventory, and fixed assets audit cycles.
Reviewing a detailed list of fixed assets as well as the assigned lives of the assets and then randomly selecting certain fixed assets and recalculating the net book value at reporting date based upon the recorded life of the asset. Substantive procedures for cash outflow irregularities description: the management of apollo shoes inc has realized that there is a risk of losing money because of irregularities in cash, payroll, and accounts payable. Substantive procedures are performed to restrict detection risk, the risk that auditors will not detect a material misstatement the audit plan, the audit program, and the time budget are three important working papers prepared early in audit. The audit is not specifically designed to search for errors or irregularities, although during the study and evaluation of internal accounting control system and the performance of substantive tests, errors, or irregularities may be discovered.
Establishing the existence of a business's fixed assets and evaluating their value is an essential auditing task fixed assets are those assets used over a long term, such as land, buildings, and. As an internal accountant, prepare a report for management that provides supporting information for a full financial status review prior to the bid.
October 12, 2016 essays acc 556 week 4 learning team assignment substantive procedures for asset irregularities resource: apollo shoes casebook outline substantive procedures by using the apollo shoes casebook for detecting irregularities in each of the following audit cycles: • accounts receivable • inventory read more. Substantive procedures for asset irregularities acc 556 february 4, 2013 substantive procedures for cash outflow irregularities each business cycle within an organization may possess weaknesses that allow opportunities in which fraudsters may recognize and abuse. Asset pricing professor péter kondor course outline and introduction overview of financial markets financial assets return historical data and risk asset pricing and present value week 1: risk and return.