Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

ACC403 - Auditing 1 "Internal Controls and Sampling Strategy" Please respond to the following (two paragraphs only): · Imagine that you have been hired to audit the sales and collections of a medium...

1 answer below »
ACC403 - Auditing 1

"Internal Controls and Sampling Strategy" Please respond to the following (two paragraphs only):

· Imagine that you have been hired to audit the sales and collections of a medium to large merchandising company. Suggest at least two (2) ways that management could manipulate earnings, and make specific recommendations for the internal control procedure to prevent or detect the transaction. Justify your response.

· Discuss the advantages and disadvantages of at least two (2) sampling methods. Make a recommendation for the best method to sample accounts receivables. Support your position.

Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
127 Votes
ACC403 - Auditing 1
"Internal Controls and Sampling Strategy" Please respond to the following (two
paragraphs only):
· Imagine that you have been hired to audit the sales and collections of a medium to
large merchandising company. Suggest at least two (2) ways that management could
manipulate earnings, and make specific recommendations for the internal control
procedure to prevent or detect the transaction. Justify your response.
Answer:-1
Two ways in which earnings can be manipulated are as follows:-
1. Inflating sales and deflating purchases-Recording entry for sales against which no
physical movement of goods takes place leads to fictitious sales just to inflate profits.
Vice versa if company wants to decrease sales it...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Attach File