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 alternative procedure might be acceptable but it should never be used. The auditors felt the differences in the audit were immaterial, but the auditors should have went further and found out the reason for these differences. If the auditors had kept track of the differences they might have found that there were many errors this causing them to find the reason why there were so many differences (Arens, Elder, & Beasley, 2012, pp. 175-206).
When it came to testing the ad’s the auditors should never rely on just internal documentation. By trusting the internal documentation they did not have sufficient enough evidence to support the credits. Placing an ad is not sufficient enough evidences without quality supporting evidences from the vendor that it was a reduction in accounts payable. When using such a small sample it is critical that the items selected can adequately represent the entire population of the list (Arens, Elder, & Beasley, 2012, pp. 175-206). When the auditors check Springbrook Distributors Credits which Grande controller told auditors three different stories as to why there were 28 credit memos (fictitious). Then