Essay
Jack CPA is the auditor of Jill Corporation.Jack followed last year's working papers in selecting accounts payable to confirm.Jack mailed confirmations to 50 of Jill's 200 suppliers.The sample was designed to select accounts with the largest balances.Jack and Jill spent a lot of time reconciling minor differences between the confirmation amounts and the accounts payable trial balance.
Required:
Do you believe that Jack should have used the same sample design for accounts payable confirmations this year? If not,what suggestions can you give to improve the design?
Correct Answer:
Verified
Because of concern about the possible un...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q46: Explain what is meant by "purchase cut-off
Q47: The requirement that supplier invoices in the
Q48: Which of the following situations indicates a
Q49: Which of the following is a common
Q50: Auditors must place more emphasis on the
Q52: Why are payables vouchers marked "paid" after
Q53: When auditors trace the test counts they
Q54: The control objective associated with selecting a
Q55: An auditee may count the inventory at
Q56: Employees in the receiving department should inspect