Inventory: Auditing and Instructor Resource Manual Essay

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Planning and Performing audit Procedures in the Revenue and Expenditure Cycles an audit Simulation C A S eS INC LU De D IN T h IS Se CTION 10 10.1 Southeast Shoe Distributor, Inc. Identification of Tests of Controls for the Revenue Cycle (Sales and Cash Receipts) Identification of Substantive Tests for the Revenue Cycle (Sales and Cash Receipts) . . . . . . . . . . . . . . 299 309 319 333 347 10.2 Southeast Shoe Distributor, Inc. 10.3 Southeast Shoe Distributor, Inc. 10.4 Southeast Shoe Distributor, Inc. 10.5 Southeast Shoe Distributor, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Selection of Audit Tests and Risk Assessment for the Revenue Cycle (Sales and Cash Receipts) . . . . . . . . . . . .…show more content…
Copyright © 2009 by Pearson Education, Inc., Upper Saddle River, NJ 07458 299 Section 10: Planning and Performing audit Procedures in the Revenue and Expenditure Cycles–an audit Simulation USE OF CASE This is the first of three cases addressing the development of an audit approach for the revenue cycle of SSD. At first glance, many students may be intimidated by this assignment. Therefore, it is important to provide students with some background information prior to asking them to complete this assignment. This assignment works well in an undergraduate or graduate course when the audit of the revenue (sales and collection) cycle or tests of controls are discussed. This assignment can be simplified for students by instructing them to identify one or two tests of controls for each control activity identified. This simplification should only be considered if the instructor does not intend to have students complete the third SSD audit planning case assignment. Additionally, students can be asked to complete audit steps 5 through 7 separately. An effective approach for this case is to discuss and complete audit steps 5 through 7 for sales transactions as an “in-class” activity. Students can then be asked to complete audit steps 5 through 7 for cash collection transactions outside-of-class. At a minimum, the instructor should review the flowcharts, control activities

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