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Accounting Information Systems 8th Edition by James Hall
Edition 8ISBN: 978-1111972141Accounting Information Systems 8th Edition by James Hall
Edition 8ISBN: 978-1111972141 Exercise 5
RISK IDENTIFICATION AND PLAN OF ACTION
As the manager of the external audit team, you realize that the embedded audit module only writes material invoices to the audit file for the accounts receivable confirmation process. You are immediately concerned that the accounts receivable account may be substantially overstated this year and for the prior years in which this EAM was used.
Required
Explain why you are concerned because all "material" invoices are candidates for confirmation by the customer. Outline a plan for determining if the accounts receivable are overstated.
As the manager of the external audit team, you realize that the embedded audit module only writes material invoices to the audit file for the accounts receivable confirmation process. You are immediately concerned that the accounts receivable account may be substantially overstated this year and for the prior years in which this EAM was used.
Required
Explain why you are concerned because all "material" invoices are candidates for confirmation by the customer. Outline a plan for determining if the accounts receivable are overstated.
Explanation
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Risk identification and plan of action b...
Accounting Information Systems 8th Edition by James Hall
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