ACCT 4750 Auditing-materiality levels of acceptable misstatement

Task:

Background Information & Instructions

Cash balances represent the culmination of the related processing cycles: sales-receivables-receipts, purchases-payables-payments, capital expenditure authorization-procurement-disbursement, treasury cycle (investing, debt and equity transactions). For this reason and the risk that a minor discrepancy could be the result of significant offsetting balances, materiality levels of acceptable misstatement, which may be assigned to other accounts in the audit, do not apply to cash balances, no matter how strong the underlying systems of internal controls. A substantive or balance sheet approach is taken on cash and audit procedures are directed to satisfy the audit objectives, notably existence and cut-off.

Your Assignment

You are to:

1. Prepare the substantive audit program for this section ensuring that its completion will enable conclusions to be reached on the audit assertions. Refer to the adopted course textbook for relevant generic procedures and modify then, as you consider necessary, to suit any particular audit emphasis and /or unique attributes of the Bon Vivant Barbecue Company environment. Try to link any procedure employed to the related assertion as indicated in the prescribed audit program format. This helps keep focus and ensures audit efficiency.  

2. Complete the audit work on the applicable “prepared by client” working papers or prepare such additional working papers to document audit work, as you consider necessary. Audit evidence in other sections of the case should be incorporated in the file section or referenced, as appropriate. Carry any audit adjustments you identify from your work on this section to the summary audit adjustment working paper and to the unadjusted trial balance.

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QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

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