Internal Control over Cash Payment and Receipts in the Case of Addis Ababa Housing Construction Project Office Lideta Branch

When collecting evidences must ensure there are no confidentially information which relates to neither the company nor their clients/customers. The evidences must be created by the candidates so that way they are valid and fair. If the candidate does not create the evidence then it is hard to identify whether or not it is fair. All evidences must be valid. I must check dates and check the assessment reports. I must speak to the Manager and advise them which type of evidence the candidate will be submitting.

3. Substantive tests procedures: The audit team should perform substantive tests on Smackey’s accounting transactions and

The auditor must remember that all information collected during the audit needs to be sufficient enough to further the audit process. The information must not only possess the two qualities, relevance and reliability, but it should also test various assertions. For instance, in the audit of Walmart, the auditor should make an attempt to acquire information such as financial statements from the company’s bank, as opposed to acquiring the statements from Walmart’s management. Taking such crucial information from Walmart’s management will put the reliability of that information into question. It is possible that management may manipulate the financial statements, so that they are more appealing to the public and investors. Management may do things

Auditors also evaluate the client’s recording of transactions by verifying the monetary amounts of transactions, a process called substantive tests of transactions. For example, the auditor might compare the unit selling price on a duplicate sales invoice with the approved price list as a test of the accuracy objective for sales transactions. Like the test of control in the preceding paragraph, this test satisfies the accuracy transaction-related audit objective for sales. For the sake of efficiency, auditors often perform tests of controls and substantive tests of transactions at the same time.

Obtain evidence: Carry out the investigation by gathering sufficient reliable information to enable the issue to be properly addressed by proving or disproving matters relevant to the issue being investigated, taking into account all relevant information and no irrelevant information. At this stage, it may be necessary to refer any matters that may be misconduct or corruption to the Corruption and Crime Commission.

3. The third stage is Fieldwork. During this stage, the auditor should observe firsthand how the company operates. They need to check out all the areas that are less effective to the welfare of the company’s finances. In the case of Smackey, the auditor would note about all the returned dog food from their specialty line that is just sitting on the loading dock. They also noticed that the dog food is being thrown out and then taken back and loaded into Henry’s trunk (possible misappropriation).

Evaluating the Reasonableness of the Accounting Estimates, and Determining Misstatements: the auditor shall evaluate, based on the audit evidence, whether the accounting estimates in the financial statements are either

This information is needed in determining if the audit was performed in compliance with GAAS and whether the conclusions reached were adequately supported.

A review and an audit report are both a form of an attestation engagement. A Review, however, is less in scope so it provides a moderate level of assurance on the financial statements. It is considered a “sniff” of an audit, which comparatively provides reasonable assurance that no material misstatements occurred. Since a review deals with a limited scope, it does not provide the basis for expressing an opinion on the presentation of the

2. Auditors are required to consider evidence obtained and accumulated throughout the audit and make an overall evaluation as to whether substantial doubt exists with respect to the ability of the client

Evidence must be “relevant to an issue that is in dispute in the case,” “material”, “established as authentic,” and “legally obtained” (2017 Fraud Examiners Manual 2017). Relevant evidence increases or decreases the likelihood of fraud occurring if the evidence had not been obtained. Material evidence provides valuable information to prove the existence of fraud. Establishing authenticity requires that I show proof that the evidence I found is legitimate and that no changes occurred between its seizure and utilization in court proceedings. Finally, all data provided as evidence must be legally obtained. Asking for permission during the audit engagement makes the evidence admissible, however, denials may result in subpoenas if the case is tried during criminal or civil proceedings. Failure to comply is a law violation, which results in the evidence’s inadmissibility (2017 Fraud Examiners Manual 2017).

a. “Analytical procedures are an important part of the audit process and consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. Analytical procedures range from simple comparisons to the use of complex models involving many

• Directing appropriate attention to the different areas of the audit such as assessing materiality, so that when the detailed audit plan is prepared, audit procedures can be directed towards the material amounts.

The framework describes internal control as a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

Forensic accounting is “ an accounting analysis that is suitable to the court, which will form the basis for discussion, debate and