Finally, at this same meeting, the audit team decided that the existence of some of the accounts receivable balances would be confirmed directly with the Lakeside customers. Either Rogers or I must initial the sales invoice and return it to the Sales Division. Analyze fraud risk factors; Assess the implications of the Sarbanes-Oxley Act; Perform analytical procedures; Prepare audit reports; What are some of the characteristics of typical auditing cases that you use in class?
In the latter part of October, Mitchell discussed her findings to date with Dan Cline and Wallace Andrews, audit partner and audit manager for the engagement. The average age of the outstanding accounts had jumped from Based on this information, I make the decision as to whether the account is collectible.
The independent auditors examine it at least once a year. Andrews suggested that interim balances as of November 30, instead of final balances as of December 31,be confirmed unless severe internal control problems were encountered. Any customer that does not pay is a bad risk.
They have been building a good group of new customers. Because of her concern, Mitchell spent considerable time reviewing with Cline and Andrews the revenue and cash receipts cycle. No other testing would seem necessary. I am not sure.
Do you prefer a text that is readily adaptable to your needs? We may have been holding on to some accounts in hopes of collecting. Is the subsidiary ledger ever tested by anyone else within the Lakeside organization?
These systems record both the increases and decreases made to accounts receivable.
What verification is made of the cash discounts that are taken by customers? I contact the sales representative, who then puts pressure on the customer. Our Sales Department recalculates all discounts. Does Rogers or anyone else at Lakeside verify the specific receivables that are deemed uncollectible?
In addition, evidence should be present to indicate that a Lakeside employee has already made this same comparison. After talking with Miller, Carole Mitchell prepared a program to test transaction details as well as the effectiveness of the control procedures in the revenue and cash receipts cycle.
What testing is normally performed to corroborate accounting estimates? In her opinion, a number of the procedures appear to be well designed for a company the size of Lakeside, but several problems do exist. Benjamin Rogers, the president of the company, had ndicated that he wanted the systems to improve as the organization grew.
What verification is made of the cash discounts that are taken by customers? Also, discuss the signs that have appeared in the first five cases that should alert the auditors to potential fraud by Lakeside. They have been directed to send any such complaints to me.
We are very tough on that issue. At that meeting, Mitchell outlined the critical areas as she perceived them within the Lakeside examination. Her first conversation was with George Miller, assistant to the president.The cases in The Lakeside Company are intended to create a realistic view of how an auditor organizes and conducts an audit examination.
These cases provide a simulation that permits learners to put the abstract and difficult concepts of auditing into practice. ASSISSING CONTROL RISK Case 4 The CPA firm of Abernethy and Chapman was hired during the summer. of to audit the financial statements of the Lakeside Company for the year ending December 31, Even though the year-end was nearly six months away, the firm began its preperation almost immediately.
Auditing II - Case 1.
In Auditing Lakeside company: case studies in auditing (12th edition, lakeside company: case studies in auditing (12th edition) [john m trussel, j douglas frazer] on amazoncom *free* shipping on qualifying offers the cases in the lakeside company are intended to create a realistic view of how an auditor organizes and conducts an audit.
Solutions Manual For The Lakeside Company Case Studies In Auditing 12e Lakeside-Companye-Trusselx Solution Manual For Lakeside Company Case Studies.
The Lakeside Company: Auditing Cases SOLUTIONS MANUAL 12e Table of Contents John M. Trussel and J.
Douglas Frazer A Note on Ethics, Fraud and SOX Questions 2. The Lakeside Company: Auditing Cases, 12th edition, has been updated in light of the accounting show more content The assignments are simply not intended to be exercises in arriving at a predetermined answer.Download