Audit Evidence of Grande Store Case Essay

1009 Words Feb 13th, 2015 5 Pages
Audit Evidence of Grande Store Case
Nancy Johnson
Rasmussen College

Author Note This paper is being submitted on January 23, 2015, for Gary Rosner, A340 Advanced Auditing Concepts and Standards course.

Audit Evidence of Grande Store Case When it came to the audit of the Grande Store there was insufficient numbers (four out of 1,100) to be an exact for the confirmations that were made regarding what was spent by McClure Advertising Credits. With 114 pages, 1,100 vendors and $300,000 at least 1% should have been audited for each vendor. Getting information to confirm by an outsider who has the qualifications is reliable and acceptable but it should be in written form. The auditors of Grande Store used the phone. This
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So the president of Grande Stores acted like he called the Springbrook president. Handing the phone to the auditors not letting them know it really was an officer of Grande Stores. This officer confirmed the credits over the phone. But the officer would not give a written confirmation supporting this credit. Again the auditors allowed this unqualified phone call to be immaterial again. Even the staff auditor thought something was suspicious with the Springbrook Credits but he did not push to investigate farther testing was done to resolve the issue of the validity of the credits. If they would have investigated farther they might have found out what the president of Grande Stores had done (Arens, Elder, & Beasley, 2012, pp. 175-206). When it came to the Ridolfi Credits the auditor could see that it was dated for another year and that things had been marked out. The auditor called Ridolfi and was told that the credits were invalid. But like the other times Ridolfi would not put it in writing. Then the president said not to contact Ridolfi due to pending litigation between them (Grande Stores) and Ridolfi (Arens, Elder, & Beasley, 2012, pp. 175-206).
When it came to Accounts Payable Accrual as to whether using only 50 accounts payable confirmations were enough. They have to have a certain objective evidences to be validated. So by checking a list of accounts payable the auditor needs to make sure it agrees with

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