Case Study

Case Study- Audit Evidence

Dena Martin

Rasmussen College

Author Note

This paper is being submitted on January 24, 2016, for Dena Martin’s A340 Advanced Auditing Concepts and Standards course.

Case Study- Audit Evidence

1. Identify deficiencies in the sufficiency and appropriateness of the evidence gathered in the audit of accounts payable of Grande Stores.

There is no follow-up showing for the error accrued in the interest payable computation. There is no confirmation that the exception was resolved. The loan violation provision of debt agreement is misclassified as long-term. The Lender’s Capital Corp and the audit schedule totals do not match. The tick marked “R” is used but not explained in the tick legend. There is no investigation of the payment on the stockholders loan that was borrowed. There is no indication that the audit schedule was prepared by client personnel.

2. Discuss what additional steps you would take to increase the sufficiency and appropriateness of the evidence needed to ensure that the audit mission is completed in a manner that fulfills substantial compliance standards in each separate instance.

An auditor needs to be retained on how to prepare the paper work and make sure that he/she covers everything and that they make the proper notes in the audit so that everyone reviewing them will be able to understand what the auditor found. If there is to many mistakes on the audit report this could hurt the company with their stockholders and investors. They need to make sure that they have enough supporting evidence to their findings. I would have another auditor review the work to make sure nothing was missed. The auditor needs to examine the documentation, scan the documentation and see if there is any unusual warranting further investigation. They need to read the written information, and compute the calculations that have already been done. They need to do an observation, physical examination and compute quality...