ACCO 465 Study Guide - Comprehensive Final Exam Guide - Financial Statement, Accounting, Internal Control
20 Nov 2018
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Required: write a review note to josh (junior) Walters (the largest balance & overdue) not confirmed. Inappropriate sampling (stat sampling used) (use judgement to pick large and risky balances) Afda: discuss with client is insufficient (testing required based on aging a/r) No follow-up on 4 positive confirmation with no response. Because stat sampling is used sample level misstatement needs to be extrapolated. Accumulative misstatements to evaluate the overall effect (cumulative effect) Use of cross refs between a/r balances and confirmation docs. Use second confirmation or alternative procedures for 36 (or some of them) Use judgement to evaluate need for confirmation of other large & risky accounts. To ensure the highest level of assurance possible regarding this fraud concern, my firm will perform a thorough assessment of your internal control environment. We will provide consulting services regarding the control weaknesses in the company and will provide recommendations on how to improve your company as a whole.
