...Internal Control Questionnaire—Sales Transaction Processing | |Yes, No, N/A | | |Assertions and Questions | |Comments | | | |Occurrence assertion: | | 1. Is the credit department independent of the sales |Yes |The sales dept is located within the marketing dept. | |department? | |The credit dept is located within treasurer’s dept. | | 2. Are sales of the following types controlled by the |N/A |There is only an indication that ‘cash sales’ are treated the | |same procedures described below? Sales to employees, COD | |same as credit sales. | |sales, disposals of property, cash sales, and scrap | | | |sales. | | | ...
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...potentials of Shea nut crop and its produce but also addresses the operational challenges of policy implementation, compliance to regulatory requirements and promotion of exchange of ideas to mitigate such challenges, but will also foster collaborations among the different stakeholders towards improving our economy. This address will highlight all the efforts of NAFDAC to effectively regulate the food , cosmetics and pharmaceutical industry as a means of improving the quality of Shea nut products for global 1 competitiveness. We believe that effective regulation in these sectors will attract foreign investors as well as encourage export of locally produced foods, cosmetics and pharmaceutical products. Regulation is a public policy that controls private behavior for public good. Effective regulation assures the quality and safety of our regulated products and also stimulates growth in the industry. Under regulation often...
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...1. (TCO B) Good project cost estimations are critical to a successful project. With that in mind, compare and contrast parametric estimating and vendor bid analysis as cost estimation techniques on a project. Please provide an example of each. (Points : 20) Parametric estimation is based on a number of similar data points of performing similar work packages in the past”. Kuehn, Ursula (2011-04-07). It is a very accurate and easy estimating technique. A formula is developed for estimating the time or resources needed to perform a project activity. The formula is usually based upon a great deal of historical experience. It provides an invaluable service in the course of the project. Parametric estimating refers, primarily, to an estimation technique which utilizes the statistical relationship that exists between a series of historical data and a particular delineated list of other variables. However, when it comes to the vendor bid analysis is a technique used when working with suppliers on uncertain activities. it is simply seeing the costs via quotes, bids, proposals offered for a project work. Is a technique used when working with suppliers on uncertain activities? The analysis considers the assumptions the vendor worked with and does a sensitivity assessment on those assumptions. In addition, for effort that the buying organization does not have experience with, they can contract with a consulting firm that has experience to do a "Should Cost" analysis. This "Should...
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...cycle, we tested 120 sales transactions and discovered 51 deviations. This significant number of deviations could potentially indicate more serious shortcomings in the system of internal controls surrounding the revenue cycle and highlights areas that will require more careful scrutiny throughout the audit. The most common type of deviation noted was the lack of the expected credit approval notation on the transaction documents. In fact, 31 of the 51 total deviations resulted from the lack of credit approval. Of the 31 “No credit approval” sales, 10 are still recorded as “unpaid” (ICC-2). This seemingly regular ignorance of a credit approval in the revenue cycle suggests that Apollo might experience above average difficulty with accounts receivable collections. As a result, it is important that the audit procedures for the allowance for doubtful accounts be strengthened to ensure the reasonableness of the company’s A/R assumptions. Errors in billing accounted for 17 of the 51 total deviations. Generally, errors in billing are expected to be a mixture of overcharges and undercharges. However, all 17 of the billing error deviations discovered in this sample of transactions were attributable to overcharges (ICC-2). This seems to indicate a specific breakdown in the internal controls system as it relates to transaction quantity and price data entry. Due to the volume of overcharges, revenues and accounts receivable could be overstated. A larger sample of transactions...
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...objectives: 1. Know the five types of audit tests. 4. Understand how the tests are emphasized in different circumstances. 5. Know the methodology for designing an audit program. 6. Understand the relationship of transaction-related audit objectives to balance-related audit objectives. 7. Integrate the four phases of the audit process. 1. Audit program The importance of the audit program cannot be underemphasized. It contains all the procedures that the auditor considers necessary in the circumstances. The specific knowledge needed to construct the audit program for tests of transactions (tests of details of balances) is covered in Chapter 13 (15). 2. Risk Assessment Procedures - The auditor is required to perform risk assessment procedures, including procedures to gain an understanding of the internal control system (Ch. 10). This includes sufficient documentation and inquiries, as well as a walk-through to support the understanding. 3. Types of Tests - there are four types of further audit procedures auditors perform after performing risk assessment procedures: | | |Relation to | | | |Risk Model | |Test |Name |CR |PDR | |TOC |Tests of Controls ...
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... * Controls – positive (purple) – S.aureus * negative ( red/pink) – E.coli 2. Endospore Staine Positive controller – B. magneterium Green spore- Positive Pink (vegetative ) – Negative 3. Acid fast Positive control – M. smeagmatis Blue – negative Pink /red- positive 4. Motility Positive control - P.vulgaris A. non motile is negative test B. motile is a positive test 5. Carbohydrates fermentation (test for gram -) ( glucose , manitol, lactose) Positive control – ecoli (yellow) Red- no color change – negative test Yellow – color change – positive test 6. Mae Conkey’s Agar Ecoli – positive control Selective for negative gram stain Differential for organism that could ferment lactase Growth pink – positive No growth – negative 7. Gelatin Hydrolysis ( Gelatinase) Positive control – P.aeruginosa Liquid –positive test Solid - Negative test 8. Blood agar Positive control – S. aureus A. Betahemolysis B. alphahemolysis C. gammahemolysis 9. FTM *broth – O2 relationship with 10. MRVP (mix acid fermentation) MR- methyl red (PH lower than 4.4) Positive control – e.coli red color- positive test no red – negative test 11. Voges Proskauer ( acetone) –precursor for those who fermented butane Positive control- E. aerogenosa Red color – positive test No color change – negative test 12. Nitrate Reduction Enzyme – nitrate redactase Positive control- E.coli ...
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...sufficient understanding of the entity and the entity’s environment, including the internal control. The understanding of the entity and its environment helps the auditor in a variety of ways throughout the audit, including establishing materiality, considering appropriateness, and designing audit procedures that can facilitate the growth of Apollo Shoes. Before the auditor can begin the process of conducting the audit of the inventory and warehousing cash cycles, the auditor must prepare the audit plan and program for Apollo Shoes. Developing the audit strategy and plan aids the auditor in determining the necessary resources to perform the engagement. The auditor must develop a plan in mind that will reduce audit risk to an acceptable level for the inventory and warehousing cash cycle. The audit plan should include a description of nature, timing, and extent of the planned risk assessment procedures. The audit plan and program significantly affects the types and extent of further audit procedures to be used by the auditor in determining whether the financial statements are fairly stated in accordance with the US GAAP. The auditor should consider audit risk in relation to the individual account balances, classes of transactions, and disclosures and relevant assertions of the overall level of the financial statements. These further audit procedures include test of controls, substantive tests of transactions and analytical procedures with the evidence collected from these procedures...
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...some types of risks while introducing new types of risks to be managed. (3)technologies generally increase an organization’s overall net risks. (4)the objective of technology implementations is to increase profitability on a net basis. b. Which of the following is generally not considered a category of IT general controls? (1)Controls that determine whether a vendor number matches the pre-approved vendors in the vendor master file. (2)Controls that restrict system-wide access to programs and data. (3)Controls that oversee the acquisition of application software. (4)Controls that oversee the day-to-day operation of IT applications. c. As general IT controls weaken, the auditor is most likely to (1)reduce testing of automated application controls done by the computer. (2)increase testing of general IT controls to conclude whether they are operating effectively. (3)expand testing of automated application controls used to reduce control risk to cover greater portions of the fiscal year under audit. (4)ignore obtaining knowledge about the design of general IT controls and whether they have been implemented. d. Which of the following is an example of an application control? (1)The client uses access security software to limit access to each of the accounting applications. (2)Employees are assigned a user ID and password that must be changed every quarter. (3)The sales system automatically computes the total sale amount and posts the total to the sales journal master file. (4)Systems...
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...Experimental Designs Control Group Pre-test/Post-test Design Threats to Internal Validity Threats to External Validity Post-Test only Control Group Design CAUSALITY To establish whether two variables are causally related, that is, whether a change in the independent variable X results in a change in the dependent variable Y, you must establish: 1) time order--The cause must have occurred before the effect; 2) co-variation (statistical association)-- Changes in the value of the independent variable must be accompanied by changes in the value of the dependent variable; 3) rationale-- There must be a logical and compelling explanation for why these two variables are related; 4) non-spuriousness-- It must be established that the independent variable X, and only X, was the cause of changes in the dependent variable Y; rival explanations must be ruled out. To establish causality, one must use an experimental or quasi-experimental design. Note that it is never possible to prove causality, but only to show to what degree it is probable. EXPERIMENTAL DESIGNS True experimental designs include: Pre-test/Post-test control group design Solomon Four-Group design Post-test only control group design Pre-test/Post-test control group design This is also called the classic controlled experimental design, and the randomized pre-test/post-test design because it: 1) Controls the assignment of subjects to experimental (treatment) and control groups through the...
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... a) Quality – Totality of Features and Characteristics of a product or service that relies on its ability to satisfy stated or implied needs. b) Quality Assurance – All those planned and systematic actions necessary to provide adequate confidence that a product or service will satisfy the given requirement for quality. c) Quality Control – Operational techniques of Controlling quality activities (e.g. Inspection and Testing) used to verify technical and quality requirement for services and or products. d) Quality Plan – A document setting out specific practices, resources and sequence of activities relevant to a particular material, procedure, service in a contract or project. e) Corrective Action – An activity, the intention of which, is to return the non-conforming item or action to a stage of conformity. It also covers the action taken to prevent further recurrences of non-conformity. f) Calibration – The comparison of two instruments, measuring devices or gauges, one of which is of known accuracy and where applicable, traceable to an internationally recognized standard. QUALITY CONTROL 4...
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...precisely the function of a positive control. 2) Describe the function of a negative control. What conclusions you would make about your entire experiment if the negative control did not act accordingly? 3) What might you conclude about the results of your test samples if one or more of the test samples tested positive but the positive control did not work according to plan? 4) What tubes represent the positive control and negative controls in Procedures 3.1, 3.2, 3.3 and 3.4? 5) Procedure 3.1 step 11 Optional treatment (see exercise in this pdf) asked you to include a tube containing a known reducing sugar and Benedict’s reagent while omitting heat. What was...
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...Management's attitude toward aggressive financial reporting and its emphasis on meeting projected profit goals most likely would significantly influence an entity's control environment when [pic][pic] A. The audit committee is active in overseeing the entity’s financial reporting policies. Answer A is incorrect. An active audit committee tends to temper management's aggressive stance. [pic] B. External policies established by parties outside the entity affect its accounting practices. Answer B is incorrect. External policies tend to moderate such management tendencies. [pic] C. Management is dominated by one individual who is also a shareholder. Answer C is correct because these noted factors tend to have an especially significant influence on the control environment when management is dominated by one or a few individuals. Such a circumstance allows management to effectively implement aggressive financial reporting and emphasize meeting profit goals. [pic] D. Internal auditors have direct access to the board of directors and entity management. Answer D is incorrect. Internal auditors tend to mitigate management's aggressive attitude. close Control environment. The control environment factors set the tone of an organization, influencing the control consciousness of its people. The seven control environment factors, which you may remember using the mnemonic IC HAMBO, are |I |- |Integrity and ethical values ...
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...International Journal for Research in Education (IJRE) Vol.1, Issue: December: 2012 ISSN: Research Paper-Education EFFECT OF YOGA EXERCISES ON ACHIEVEMENT, MEMORY AND REASONING ABILITY Nilesh Gajjar Assistant Prof. SVS Edu. College, P. G. Dept., Nagalpur, Mehsana. ABSTRECT Now, we are living in the world of 21st century which is known as the world of ‘Mental Stress’ in these circumstances, knowledge amplifies day by day. There is a Knowledge explosion in the world, hence each and every person tries to get this Knowledge by new & most recent Medias & they also use it. In this direction there is a qualitative growing up in the person for in receipt of Knowledge & its use by appreciative. In the same way, we notice the qualitative addition in the Educational organization, teachers, & the students, which are going to get Knowledge. In these circumstances, teachers & students feel a perplexity. So there is a question against us that, this growth in the education organization, teachers & in the students will have no proper direction for the Academic achievement of students. If we get an affirmative answer of this question, we must do the fundamental change in the teaching learning process of Education. In the present day, each person including the students and the teachers face anxiety, frustration, etc. Due to these factors, the students cannot keep much interest in their study, academic activity & their performance in the entire exam. Consequently, in this way it is very...
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...Lecture 5 Audit of the Sales and Collection Cycle Summary of the Audit Process Phase 1 Plan and design an audit approach 1. Accept client and perform initial planning 2. Understand client’s business and industry 3. Assess client business risk 4. Perform preliminary analytical procedures 5. Set materiality & assess acceptable audit risk and inherent risk 6. Understand internal control and assess control risk 7. Gather information to assess fraud risk 8. Develop overall audit plan and audit program Phase 2 Perform tests of controls & substantive tests of transactions Plan to reduce assessed level of control risk? No Yes Phase 3 Perform analytical procedures and tests of details of balances 1. Perform analytical procedures 2. Perform tests 3. Perform additional tests of details of balances Phase 4 Complete the audit & issue an audit report 1. Perform tests for presentation & disclosure 2. Accumulate final evidence 3. Evaluate results 4. Issue Audit Report 5. Communicate with audit committee & management 1. Perform test of controls 2. Perform substantive tests of transactions 3. Assess likelihood of misstatements in financial statements Accounts in the Sales and Collection Cycle 14-3 Sales and Sales returns Transaction 4 Accounts Sales Accounts receivable Business Functions Processing customer orders Granting credit Shipping goods Billing customers and recording sales Documents & Records Customer order Sales order Customer or sales order Shipping...
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... Apollo Shoes, Inc. Langley, ME Dr Mr. Elliot, We have developed test o controls of substantive test of transactions, and analytical procedures for the audit of Apollo Shoes Inc.’s sales and collection cycle, payroll and personnel cycle, acquisition and payment cycle, and Inventory and Warehousing cycle in line with the generally accepted auditing principles. The objective is to verify existence, accuracy and completeness. A substantive test should be associated with each of the transactions related to the audit objectives. The objectives of the audit include the occurrence, accuracy, completeness, posting, classification, summarization, and timing. Analytical Procedures must be performed in the planning stage of the audit and reviewed near the end of the audit. This serves to provide additional assurance to the auditor that the account has also been presented fairly in line with the generally accepted accounting principles. Based on previous research, it is our opinion that the sales and collection cycle controls are significantly ineffective. Several of the results indicate that the sales transactions are improperly recorded due to absent bill of ladings and a lack of correct approvals resulting in issues with Apollo Shoes Inc. collection activities as well as erroneous customer...
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