RSM427H1 Lecture 8: 8-2
Document Summary
Feasibility considerations: significance of audit effort and time required, availability and sequence of data files, availability of qualified staff/personnel. Purpose of caat types caat application matrix. Loans (verifying interest calculation: deposits (checking withdrawals from dormant account, credit cards (verifying service charges to merchants, non-interest revenue (verifying calculation) Gas applications revenue: sales (selecting a sample to vouch, receivable (aging, cost of sales (cross-referencing to inventory changes, commissions (verifying calculation) Gas applications expenditure: purchases (checking to warehouse receipts indicated in data file) Inventory (obsolescence: check the time of last sales, challenges, certain types of inventory may be held for a long period of time compared to others. In july, people usually spend more money to buy staff for christmas: lower of cost and nrv, expenses (analytical review, payroll (verifying calculation) Journal entries (verifying debits to credits: suspense items (aging, definition: items that cannot be classified in any category, gl number changes (sampling for vouching to management authorization, consolidation (verifying calculation)
