wall board

9

Auditing Cash and Revenues
C A S ES INC LU DE D IN T HIS SE CTION

9.1 Wally’s Billboard & Sign Supply

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279

The Audit of Cash

9.2 Henrico Retail, Inc.

Understanding the IT Accounting System and
Identifying Audit Evidence for Retail Sales

9.3 Longeta Corporation

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285

Auditing Revenue Contracts

9.4 Bud 's Big Blue Manufacturing

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291

Accounts Receivable Confirmations

O T HE R C AS ES THAT DI S CUSS T OPICS RELATED TO THI S S ECTION
8.2 Northwest Bank . . . . . . . . . . . . . . .
Developing Expectations for Analytical …show more content…

Glover, Ph.D. and
Douglas F. Prawitt, Ph.D. of Brigham Young University, as a basis for class discussion. Wally’s is a fictitious company. All characters and names represented are fictitious; any similarity to existing companies or persons is purely coincidental.

Copyright © 2009 by Pearson Education, Inc., Upper Saddle River, NJ 07458

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Section 9: Auditing Cash and Revenues often simply focus on confirming the accuracy of numbers and often do not catch bigger-picture issues relating to evidence quality. These issues are included to help students realize the need for professional skepticism when obtaining and evaluating evidence and help them pay attention to more than just the numbers. To help the instructor make a vivid and lasting impression about evidence quality, a copy of the fraudulent faxed confirmation form used by Parmalat is included in these notes so the instructor can make an overhead to use in class. The actual forged Parmalat fax can be used to create a vivid learning experience for students.

USE OF CASE
This case gives students real-world experience doing a task they will probably perform soon after graduation and simulates a situation similar to the Parmalat fraud by including a questionable faxed confirmation form. Students should become familiar with the documents used to audit cash accounts and learn how to properly document work using tick marks. The case is intended to go