wall board
9
Auditing Cash and Revenues
C A S ES INC LU DE D IN T HIS SE CTION
9.1 Wally’s Billboard & Sign Supply
. . . . . . . . . . . . . . . .
259
. . . . . . . . . . . . . . . . . . . . . . . . . .
279
The Audit of Cash
9.2 Henrico Retail, Inc.
Understanding the IT Accounting System and
Identifying Audit Evidence for Retail Sales
9.3 Longeta Corporation
. . . . . . . . . . . . . . . . . . . . . . . .
285
Auditing Revenue Contracts
9.4 Bud 's Big Blue Manufacturing
. . . . . . . . . . . . . . . . .
291
Accounts Receivable Confirmations
O T HE R C AS ES THAT DI S CUSS T OPICS RELATED TO THI S S ECTION
8.2 Northwest Bank . . . . . . . . . . . . . . .
Developing Expectations for Analytical Procedures
8.3 Burlingham Bees . . . . . . . . . . . . . .
Using Analytical Procedures as Substantive Tests
INSTRUCTOR RESOURCE MANUAL — DO NOT COPY OR REDISTRIBUTE
. . . . . . . . . . . . . .
245
. . . . . . . . . . . . . . .
251
INSTRUCTOR RESOURCE MANUAL — DO NOT COPY OR REDISTRIBUTE
C A S E
Wallyʼ’s Billboard & Sign Supply
9.1
The Audit of Cash
Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt
INS TR UC T I O NAL O B JE C TI VE S
[1]
[2]
[3]
To give students hands-on experience with the substantive audit of cash, a task commonly assigned to relatively new auditors.
To familiarize students with documents commonly involved in the audit of cash, including cutoff bank statements, reconciliations, and the standard bank confirmation form.
To help students understand the importance of exercising professional skepticism in evaluating audit evidence.
[4]
To illustrate a costly error made by auditors in the Parmalat SpC situation, in which the auditors accepted a forged bank confirmation that was allegedly faxed to the auditors by Parmalat client personnel (a copy of the actual forged
Parmalat fax is included in these instructor notes
for
Auditing Cash and Revenues
C A S ES INC LU DE D IN T HIS SE CTION
9.1 Wally’s Billboard & Sign Supply
. . . . . . . . . . . . . . . .
259
. . . . . . . . . . . . . . . . . . . . . . . . . .
279
The Audit of Cash
9.2 Henrico Retail, Inc.
Understanding the IT Accounting System and
Identifying Audit Evidence for Retail Sales
9.3 Longeta Corporation
. . . . . . . . . . . . . . . . . . . . . . . .
285
Auditing Revenue Contracts
9.4 Bud 's Big Blue Manufacturing
. . . . . . . . . . . . . . . . .
291
Accounts Receivable Confirmations
O T HE R C AS ES THAT DI S CUSS T OPICS RELATED TO THI S S ECTION
8.2 Northwest Bank . . . . . . . . . . . . . . .
Developing Expectations for Analytical Procedures
8.3 Burlingham Bees . . . . . . . . . . . . . .
Using Analytical Procedures as Substantive Tests
INSTRUCTOR RESOURCE MANUAL — DO NOT COPY OR REDISTRIBUTE
. . . . . . . . . . . . . .
245
. . . . . . . . . . . . . . .
251
INSTRUCTOR RESOURCE MANUAL — DO NOT COPY OR REDISTRIBUTE
C A S E
Wallyʼ’s Billboard & Sign Supply
9.1
The Audit of Cash
Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt
INS TR UC T I O NAL O B JE C TI VE S
[1]
[2]
[3]
To give students hands-on experience with the substantive audit of cash, a task commonly assigned to relatively new auditors.
To familiarize students with documents commonly involved in the audit of cash, including cutoff bank statements, reconciliations, and the standard bank confirmation form.
To help students understand the importance of exercising professional skepticism in evaluating audit evidence.
[4]
To illustrate a costly error made by auditors in the Parmalat SpC situation, in which the auditors accepted a forged bank confirmation that was allegedly faxed to the auditors by Parmalat client personnel (a copy of the actual forged
Parmalat fax is included in these instructor notes
for