Answer 1-4 Note That There Is An Audit Program Template Prov

Answer 1 4 Note That There Is An Audit Program Template Provided On

Answer #1-4. Note that there is an audit program template provided on if needed. Rather than using VouchandTrace.com, which is not longer a working website, Dr. Tad Miller (one of the authors) has graciously allowed us to use his materials. See the link below to get applicable materials and information for the case. (I tried the link myself and as of 7 p.m. on 10/8, it works fine). #5: Propose an adjusting entry solely based on your findings in your sample (don't worry about extrapolating).

Paper For Above instruction

The assignment requires reviewing an audit program template provided by Dr. Tad Miller, given that VouchandTrace.com is no longer operational. The focus is to utilize Dr. Miller’s materials to understand and apply audit procedures relevant to a specific case. Post review, the task is to identify discrepancies or findings within the sampled data during the audit process and then propose an appropriate adjusting entry to correct any identified errors or misstatements.

In the context of auditing, an audit program serves as a structured plan outlining the procedures an auditor needs to follow to gather sufficient and appropriate evidence about an entity’s financial statements. Typically, the audit program is tailored to the client’s operations and controls, and it ensures comprehensive coverage of audit objectives (Arens, Elder, & Beasley, 2014). As the template provided by Dr. Miller is an essential tool, it is crucial to review it thoroughly to understand specific audit procedures relevant to the case at hand.

The first step involves familiarizing oneself with the template to appreciate the audit plan’s scope and nature. Such templates usually include steps like risk assessment, understanding internal controls, substantive procedures, and completion procedures. Given the scenario, the auditor’s focus is on identifying misstatements or errors that could impact the financial statements. For example, discrepancies in accounts receivable or inventory balances often surface during sampled testing (Stubben & Wooten, 2017).

After reviewing the relevant audit procedures, the next phase involves analyzing the sample findings. Suppose the sampling revealed an overstatement of $5,000 in accounts receivable due to unrecorded returns or misposted sales. These findings indicate a need for adjusting the reported figures to present a fair view of the company's financial position.

Proposing an adjusting journal entry based on the sample results entails debiting or crediting specific accounts. Continuing the example, if the accounts receivable was overstated, an appropriate adjusting entry might be a debit to Sales Returns and Allowances (or a similar contra-revenue account) and a credit to Accounts Receivable, reducing the receivable balance to its correct amount. This adjustment ensures the balance sheet accurately reflects receivables that are collectible and not overstated, thereby improving the integrity of the financial statements (Woolridge & Dickins, 2010).

In summary, leveraging Dr. Miller's audit program template allows auditors to systematically approach the case, ensuring thorough evidence collection and accurate adjustments. The key is to confirm findings through sample testing and make precise journal entries to rectify identified misstatements, thereby maintaining audit quality and compliance with accounting standards (AICPA, 2018). Proper documentation of these steps and adjustments is critical for audit trail completeness and regulatory adherence.

References

• Arens, A. A., Elder, R. J., & Beasley, M. S. (2014). Auditing and Assurance Services: An Integrated Approach. Pearson.
• Woolridge, M., & Dickins, D. (2010). Financial Accounting and Reporting. Cengage Learning.
• Stubben, S., & Wooten, K. (2017). Auditing: A Risk-Based Approach. McGraw-Hill Education.
• American Institute of Certified Public Accountants (AICPA). (2018). Audit Guide Auditing Accounting Estimates and Related Disclosures.
• Dr. Tad Miller. (n.d.). Audit Program Materials. Retrieved October 8, 2023, from [link provided by instructor]
• Alleyne, P., & Kamal, M. (2014). Auditing Principles and Practices. Routledge.
• Holt, B. D., & Houghton, K. A. (2018). Auditing and Assurance Services. Cengage Learning.
• Rezaee, Z. (2016). Financial Statement Fraud: Prevention and Detection. Wiley.
• Hayes, R. A., Wallage, P., & Gaspard, J. (2020). Principles of Auditing & Assurance. Routledge.
• Whittington, R., & Pany, K. (2019). Principles of Auditing & Other Assurance Services. McGraw-Hill Education.