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ColAlta Pipeline: An External Auditing Simulation ColAlta Pipeline An External Auditing Simulation by Stephen L. Bergstrom, MBA, CPA, CMA Southern Alberta Institute of Technology COLALTA PIPELINE AN...

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ColAlta Pipeline: An External Auditing Simulation
ColAlta Pipeline
An External Auditing Simulation




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Stephen L. Bergstrom, MBA, CPA, CMA
Southern Alberta Institute of Technology
COLALTA PIPELINE
AN EXTERNAL AUDITING SIMULATION
2

















ColAlta Pipeline: An External Auditing Simulation
2018 edition








Photo credit: www.colou
ox.com
Used under educational license.



















In memory of Siska
Friend, daughter, angel
1997 – 2013
http:
www.colou
ox.com
COLALTA PIPELINE
AN EXTERNAL AUDITING SIMULATION
3
TABLE OF CONTENTS

INSTRUCTIONS .............................................................................................................................. XXXXXXXXXX4
INTRODUCTION AND OVERVIEW ............................................................................................ XXXXXXXXXX5
NATURAL GAS .............................................................................................................................. XXXXXXXXXX5
COMPANY HISTORY .................................................................................................................... XXXXXXXXXX6
BUSINESS OPERATIONS .............................................................................................................. XXXXXXXXXX7
MANAGEMENT AND EMPLOYEE PROFILES .......................................................................... XXXXXXXXXX8
Task 1 – Audit Preparation ............................................................................................................. XXXXXXXXXX12
Task 2 A – Process Review / Testing of Controls .......................................................................... XXXXXXXXXX17
Task 2 B – Document Review / Testing of Details ........................................................................ XXXXXXXXXX22
APPENDIX 2 – UNAUDITED FINANCIAL STATEMENTS (Task 1) ...................................... XXXXXXXXXX21
APPENDIX 3 – TRANSCRIPTS OF INTERVIEWS WITH COLALTA PERSONNEL (Task 2 A XXXXXXXXXX
APPENDIX 4 – SOURCE DOCUMENTS FOR TESTING OF CONTROLS RELATED TO ..... XXXXXXXXXX28
APPENDIX 5 – SOURCE DOCUMENTS FOR SUBSTANTIVE TESTING OF ACCOUNTS PAYABLE
(Task 3) ........................................................................................................................................... XXXXXXXXXX29
APPENDIX 6 – LETTER FROM THE PRESIDENT ................................................................... XXXXXXXXXX30
ACKNOWLEDGEMENTS ............................................................................................................ XXXXXXXXXX31
REFERENCES .................................................................................................................................
Answered 2 days After Mar 26, 2022

Solution

Pawan answered on Mar 29 2022
112 Votes
ColAlta Pipeline: An External Auditing Simulation
COLALTA PIPELINE
AN EXTERNAL AUDITING SIMULATION
ColAlta Pipeline, Ltd.
Identification of significant financial statement risks December 31, 2019
    
Description of
Potential Financial Statement Risk
    
Financial Statement Account(s)
Affected
    
Financial Statement Assertion(s)
    
Explanation / Justification
    Capex
    Long-term debt
    Valuation or Allocation, Rights and Obligations
    Any material misstatement in capex expenses will lead to risk to user of financial statement.
    Price Risk
    Transportation revenue
    Presentation and Disclosure, Existence or Occu
ence, Completeness Valuation or Allocation
    Any change in price of services relating to transportation gas should be properly reflected in financial statement otherwise will lead to material misstatement
    Cost Risks
    Operations and maintenance
    Presentation and Disclosure, Existence or Occu
ence, Completeness Valuation or Allocation
    All the operation cost should be properly checked, and accounting otherwise financial statement will not give true & fair presentation of financial statement and lead to material misstatement.
    WP Ref:
    A2-1
    Prepared by:
    
    Reviewed by:
    
    Date prepared:
    
(
14
)
ColAlta Pipeline, Ltd.
Identification of financial statement users December 31, 2019
COLALTA PIPELINE
AN EXTERNAL AUDITING SIMULATION
    
Financial Statement Users
    
Financial Statement Area of Most Concern to Use
    
Explanation / Justification
    Management of the Company
    Profitability, Cash Flow, and various other day to day operational activity.
    The management of the company looks at the financial statement for three key Statement i.e. financial statements Balance Sheet- Position of assets & Liability, Income- Revenue & Expenses & Cash Flow Statement- Liquidity.
    Employees
    Salary, bonus, and increments
    Employees look at the financial statement of the company to understand the...
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