Audit Program Design Part Iii

Audit Program Design Part III

ACC 546

March 19, 2012

Audit Program Design Part III for Apollo Shoes

During phase III audit plan, Anderson, Olds, & Watershed (AOW) will focus in two important cycles, Inventory and Warehouse Cycle and Cash Cycle. There are six classes of transactions in the inventory and warehouse cycle; process purchase orders, receive raw materials, store raw materials, process of goods, store finished goods and ship finished goods. Cash account is a part of every cycle except inventory and warehousing (Arens, Elder, & Peasley, 2006). Cash is primarily important and extremely vulnerable to fraud that is why auditor needs to be careful in the assessing risks in auditing cash account (Arens, Elder, & Peasley, 2006). Anderson, Olds, & Watershed (AOW) responsibility is to conduct a fair and unbiased audit; we will conduct these tests and procedures according to PCAOB auditing standards. There is not absolute assurance that all misstatements or errors will be discovered.

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| |Inventory and Warehousing Cycle |

|Test Controls | |

|Test of control and substantive test of transactions |Inventory reports match physical inventory counts, value of inventory is correct and |

| |matches general ledger. (Detail tie-in) |

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| |Compare the Inventory...