1.Compile a working paper indicating all relevant information that should be included in the working paper. In your design and compilation of the working paper ensure that include the following elements:Audit Objective:Sample:Audit Procedures:Testing workings and results:Conclusion: An audit of trade receivables (debtors) has just been completed and the following informationis on file:Jane Motha, a junior internal auditor, evaluated trade receivables (debtors) of Plastic DesignsLtd. The purpose of the audit was to review the adequacy and effectiveness of internal controlsover outstanding debts. A sample of 30 debts was reviewed by Jane Motha on 15 August2021. The sample was randomly selected from a population of 80 outstanding invoices for theperiod 01 June 2020 to 30 June 2021. Jane enquired from the financial manager whethermeasures were taken to follow-up on outstanding debts. In addition, confirmation ofcreditworthiness report for the sample selected was inspected to ensure that only qualifyingcustomers are granted credit.Out of a sample of 30 debts, a total of 20 customers were not assessed for creditworthinessand follow-up on outstanding debts was not done for all invoices tested. This caused PlasticDesigns Ltd to write-off a total of R3 million on bad debts. The controls over outstanding debtsare ineffective and a finding is raised. Nkosinathi Kwena, a senior internal auditor gave Janereview notes on her working paper (TRWP001) on 20 August 2021.

Audit working papers are the properties of the auditors which is not to be shared by the auditor…

1.Compile a working paper indicating all relevant information that should be included in the working paper. In your design and compilation of the working paper ensure that include the following elements: Audit Objective: Sample: Audit Procedures: Testing workings and results: Conclusion:

1.Compile a working paper indicating all relevant information that should be included in the working paper. In your design and compilation of the working paper ensure that include the following elements: Audit Objective: Sample: Audit Procedures: Testing workings and results: Conclusion:

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 32RQSC

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Milton Chambers CIA was retained by Hall Corporation to perform an audit of its financial statements for the year ending December 31. In a preliminary meeting with company officials, Chambers learned that the corporation customarily accepted numerous notes receivable from its customers. At December 31, the client company’s controlled provided Chamber with a list of the individual notes receivable owned at that date. The list showed for each note the date of the note, amount, interest rate, maturity date, and name and address of the maker. After a careful consideration of the internal control relating to notes receivable, Chambers turned his attention to the list of notes receivable provided to him by the controller. Chambers proved the footing of the list and determined that the total agreed with the general ledger control account for notes receivable and also with the amount shown in the balance sheet. Next he selected 20 of the larger amounts on the list of notes receivable for…
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For each of the procedures described in the table below, identify the audit procedure performed and classification of the audit procedure using the following: Audit Procedures: (1) Analytical procedure (2) Confirmation (3) Inquiry (4) Inspection of records or documents (5) Inspection of tangible assets (6) Observation (7) Recalculation (8) Reperformance Classification of Audit Procedure: (9) Substantive procedures (10) Test of controls Procedure Audit Procedure Classification of Audit Procedure a. Requested responses directly from customers as to amounts due. b. Compared total bad debts this year with the totals for the previous two years. c. Questioned management about likely total uncollectible accounts. d. Watched the accounting clerk record the daily deposit of cash receipts. e. Examined invoice to obtain evidence in support of the ending recorded balance of a customer. f. Compared a sample…
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