Pinnacle Manufacturing Part V

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PINNACLE MANUFACTURING―PART V
ACCT444 Group Project Part 5 S
15-35 a. (Debbie, Anhchi, and Rachel)
Client: Pinnacle Manufacturing
Audit Area: Tests of Controls and Substantive Test of Transactions―Acquisitions. Define the Objective(s): What is the objective?
Define the population precisely (including stratification, if any): What is the population? Define the sampling unit, organization of population items, and random selection procedures: What is the sampling organization?

Description of Attributes| Planned Audit| Actual Results| | EPER| TER| ARACR| Initial Sample
Size| Sample Size| Number
of
Exceptions| SER| Calculated
Sampling
Error
(TER-SER)|
1.Evidence of internal verification of voucher package including propriety of purchase, dates, unit costs, prices, extensions, footings, account classification, recording in journal, and posting and summarization. (6a, b)| 0| 6%| 10%| 30| 30| 1| 3.3%| 2.7%| 2.Prices on vendors' invoices conform to approved price limits established by management. (6c)| 0| 5%| 10%| 40| 40| 0| 0| 5%| 3.Price times quantity and other calculations on the vendor's invoice are correct. (6d)| 1%| 5%| 10%| 50| 50| 0| 0| 5%| 4.Evidence of proper account classification on vendors' invoices. (6e)| 1%| 5%| 10%| 50| 50| 0| 0| 5%| 5.Dates on entries in purchases journal agree with dates on receiving reports. (6f)| 1%| 5%| 10%| 50| 50| 1| 2%| 3%| 6.Evidence of internal verification of each purchase voucher. (6g)| 0| 6%| 10%| 30| 30| 0| 0%| 6%|

Results:Are the controls effective and why or why not?

ACCT444 Group Project Part 5 S
15-35 b. (NAJIA & JESSICA)
Client: Pinnacle Manufacturing
Audit Area: Tests of Controls and Substantive Test of Transactions―Cash Disbursements Define the Objective(s): Examine cancelled checks and other related documents to...
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