Sim Project Issuing Audit Report
ClariCall
ClariCall is a leader in the telecom industry. They have survived the pitfalls of a seemingly sloth industry. Due to their survival skills, questions of how they survived have become an instant issue. Audit and investigation staffs are required to verify that the correct amount of revenue is declared or quantified. In doing this, it may be necessary to test the information provided and the assertions made by or on behalf of ClariCall. Therefore, the Revenue Verification Process will play a major factor in discovering if the industry leader is really a leader or a pretender. During the last three quarters, the pitfalls of the telecom industry have been well documented and caused ClariCall to make all efforts to sidestep the threat. After all is said and done, the most important factor must be completed, the auditor must select the suitable Audit Report that will show the industry that ClariCall’s financial statements were reviewed clearly and without impaired judgment.
Alicia White, Senior Partner, KRA, suggests asking the customers for verifications due to the high volume of sales ClariCall’s Revenue Account shows. Confirmation procedures for receivables are important audit tests that lead to sales verification. I would agree with requesting for external confirmations first. In doing so the customer would verify the validity of the company’s claims. Having actual proof in hand is better than taking the company’s word at full value.
This means the first step in the revenue verification process is to confirm accounts receivables totals owed to the company. Letters are sent to the audited company’s vendors/customers, asking them to verify the amount they owe the company. If they are not in agreement, the letter states they should include an explanation and proof. This will help the auditors determine if all ClariCall’s information is correct and the totals are equal in comparison to the vendors/customers response. My decision yielded this response: “You
ClariCall is a leader in the telecom industry. They have survived the pitfalls of a seemingly sloth industry. Due to their survival skills, questions of how they survived have become an instant issue. Audit and investigation staffs are required to verify that the correct amount of revenue is declared or quantified. In doing this, it may be necessary to test the information provided and the assertions made by or on behalf of ClariCall. Therefore, the Revenue Verification Process will play a major factor in discovering if the industry leader is really a leader or a pretender. During the last three quarters, the pitfalls of the telecom industry have been well documented and caused ClariCall to make all efforts to sidestep the threat. After all is said and done, the most important factor must be completed, the auditor must select the suitable Audit Report that will show the industry that ClariCall’s financial statements were reviewed clearly and without impaired judgment.
Alicia White, Senior Partner, KRA, suggests asking the customers for verifications due to the high volume of sales ClariCall’s Revenue Account shows. Confirmation procedures for receivables are important audit tests that lead to sales verification. I would agree with requesting for external confirmations first. In doing so the customer would verify the validity of the company’s claims. Having actual proof in hand is better than taking the company’s word at full value.
This means the first step in the revenue verification process is to confirm accounts receivables totals owed to the company. Letters are sent to the audited company’s vendors/customers, asking them to verify the amount they owe the company. If they are not in agreement, the letter states they should include an explanation and proof. This will help the auditors determine if all ClariCall’s information is correct and the totals are equal in comparison to the vendors/customers response. My decision yielded this response: “You