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Maximum 2 pages of content and table , excluding references and appendix A) 2 table -1 traditional and 1 kabbage (select sales invoces form Masterfile trace it to sales journal) include completeness,...

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Maximum 2 pages of content and table , excluding references and appendix

A) 2 table

-1 traditional and 1 kabbage (select sales invoces form Masterfile trace it to sales journal) include completeness, occurance, existence if there is vouching

- Kabbage table- test of control

- Vouching ? depends on procedure. How persuasive is that audit evidence.

- The original question's assertions of completeness and existence are correct, but the audit procedures of tracing and vouching that you may use in the audit programme for revenue account will touch on completeness and occurrence as well.

B) Discussion limitation of audit procedure

- To be able to discuss and evaluate the drawbacks and persuasiveness of audit evidence Kabbage

- To be able to assess how the client’s IT influences audit risk

- Comparing the Kabbage data aggregation with traditional processes related to the credit approval process. Your focus will be on the audit assertions of completeness and occurrence.

- Discussion on the evaluation of sufficient appropriate audit evidence, including social media.

C) Recommendation- only talk about kabbage. DON’T TALK TRADITIONAL!!

D) Conclusion – assess how disruptive technologies, influence the demand for audit and assurance engagements.

Answered Same Day Oct 12, 2021

Solution

Preeta answered on Oct 13 2021
145 Votes
Introduction:
ASA 500 clearly mentions that the auditor must gather adequate evidence regarding the transactions of the company to form audit evidence. ASA 200 is in conjunction with this standard which mentions the overall objectives of the independent auditors. One of the objectives is to gather sufficient evidence on an organization to form an audit opinion (Gay & Simnett, 2012). So, auditor has to gather evidences during the conduct of audit whether from the client business or from the third parties.
A. Tables:
    Basis
    Traditional banking
    Ka
age
    Completeness
    The information is taken in detail including the financial statement which has been prepared. So, the information is complete from the perspective of the auditor.
    Detail information are not being taken, the company rather consolidate the client data and make financial statement. So, the information is not complete from the perspective of the auditor.
    Occu
ence
    If the transactions have actually occu
ed are being properly verified before proceeding loans and it takes around seven to ten days to approve a loan (Wagner, 2012). So, the auditors can also rely on the occu
ence of the transactions.
    The information is not verified well since the loans are processed within two days and so evidently the company does not get much time for verification. So, the auditors can also rely on the occu
ence of the transactions.
    Existence
    Like occu
ence, existence of the transaction can also be established by the auditor from...
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