Evidence Analysis – 60 Points Auditors use many different types


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Please help me to do this assignment as soon as you can! Thank you! Evidence+Analysis+-+Student+Version(1)(1)(1)[1].docx Evidence Analysis – 60 Points Auditors use many different types of procedures to gather many different types of evidence during an audit. The types of procedures are listed below: Types of Procedures Inquiry Reperformance Inspection of documents/records Observation Inspection of tangible assets Recomputation Confirmation Analytical Procedures Part 1 (30 points) • Identify the type of procedure from the list above that best describes the procedure performed. (NOTE: Each type of procedure will be used at least once.) • Rank the reliability of each type of evidence gathered by the procedure on a scale of 1 to 5 (1 = least reliable and 5 = most reliable) • Describe your reason for your ranking Part 2 (30 points) • Identify one relevant assertion(s) the procedure provides evidence about (NOTE: You may not use the same assertion more than 4 times) • Explain how the procedure provides evidence for the assertion. Generally describe the nature of the evidence collected (e.g., physical, representation, etc) Please make your analysis complete but concise. Your reasons for your answers must be complete sentences. Format your submission in the form of a table as shown. Do not limit your analysis to the space available. Late submissions will be penalized 20%. No submissions will be accepted more than one week late. PART 1 Procedure Count cash on hand (SAMPLE) Obtain analyses of cash balances and reconcile them to the General Ledger Review the client’s bank statement reconciliation PART 2 Type of Procedur e Inspectio n of tangible assets Reliability Ranking 5 Reliability Reason Relevant Assertion Assertion Explanation The auditor creates the evidence by examining the assets themselves. This provides the best evidence because the auditor does not rely on any other factors for the reliability of the information. Existence Inspecting the cash provides strong evidence that the cash included on the balance sheet actually exists. This procedure creates physical evidence about the existence of the cash. Evidence Analysis – 60 Points Inspect bank cut-off statement and compare to outstanding checks as of year-end Review aged trial balance of accounts receivable Confirm receivables with customers Observe the client’s inventory-taking and make test counts Test the pricing of inventories Compare rental income to lease agreements Test clerical accuracy of the extensions on an inventory schedule Inspect equipment in the client’s plant Ask plant managers whether there is any obsolete equipment Inspect ownership documents for significant equipment Analyze repair and maintenance expense accounts Reconcile liabilities with monthly statements from creditors Obtain a management representation letter. Read more

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