BC2 Public Practice Audit Case
By: Debbie Moy, BA. CGA

1

BC2- Introduction
Public Practice Audit Case Contains: • Part 1 Client Background • Part 2 W/P Preparation. • Part 3 Student tasks. • Part 4 Working papers (ie. W/P) • Part 5 Permanent File • Part 6 Client documents • Part 7 Blank W/Ps’
2

BC2

Table of Contents:
1. Welcome to BC2- Public Practice Audit Case! 2. Introduction 3. Student tasks (#1 to #10) 4. FAQ from students 5. Disposition sheet and Deficiency List 6. Handouts 7. Lecturer’s ideas for success!
3

1

BC2

Introduction:

• How long does BC2 take to do? • Computer requirements:
- Windows 2000 or higher - CaseWare (CGA version) - Internet access
4

BC2

Student Tasks
• Task 1: Review client acceptance and engagement letter, takeover letter, and reply. . Task 2: Perform preliminary analysis. • Task 3: Determine materiality and assess risk. • Task 4: Gain an understanding of the client’s internal control and assess control risk. • Task 5: Design and perform tests of controls and dual purpose tests.

5

BC2

Student Tasks
• Task 6: Perform audit of cash. • Task 7: Perform audit of accounts receivable using dollar unit sampling. • Task 8: Perform audit of inventory. • Task 9: Perform audit of accounts payable using non-statistical sampling. • Task 10: Complete the audit.

6

2

BC2 P. 3 Student Tasks
• • • • • Client acceptance Establish Independence Obtain understanding of client’s business Perform preliminary analysis Overall Audit Assess inherent Risk, Assess Control Risk, and Perform Tests of Controls • Perform Substantive Tests Complete Audit • Issue Auditor’s Report!
7

BC2

Marks:
• Read BC2 instruction pages that come with the BC2 set. • All work must be in good form. • Professional standards apply.
8

BC2

Audit Planning and Audit Work:
• • • • Initial and date working papers Use pencil