Auditing Persuasive Essay

Assume that fraud has been discovered In the “Possible Errors and Fraud” list, shown as A through O In the problem. Select two of the fraud Items from the list and note them here: Fraud Item Invoices for goods sold are posted to incorrect customer accounts. Fraud Item Invoices are sent for shipped goods and are recorded in the sales journal, but are not posted to any customer account. Following the scientific method, answer the following questions below: a.
Do aground research in relationship to the issue to get a more in-depth understanding of the situation. What questions would you ask of management to determine how the fraud Is occurring based on the specific fraud Identified? Fraud Item #1 Are the employees In charge of shipping comparing the product shipped with the sales Invoice to determine that the goods are being shipped to the customer who ordered them? Fraud Item #2 Why are the invoices for shipped goods not being posted to any of the customers’ accounts? B. Construct your hypotheses concerning the issue which we will use to test our data against.
Your hypotheses will be the implications on the financial statements because of the fraud Items you Identified. (Which accounts are affected? Will they be overstated or understated? ) Fraud Item #1 If Invoices are checked once a month, then goods would not be sent to wrong customers. Fraud Item #2 If controlled amounts posted to the accounts receivable ledger are compared with control totals of invoices, then invoices would be posted to the customer’s account. C. Test your Hypotheses by doing experiments. To test your hypotheses, you’ll need to list controls that would have to fall for the read to be committed.

Then for testing, list what specific audit procedures you “Controls” from problem 11-38 that apply to your fraud items. Controls that would have to fail to allow fraud Audit procedures to test controls Fraud Item #1 Invoices are going to the wrong customer C. Monthly statements are mailed to all customers with outstanding balances. Fraud Item #2 Invoices are not being posted to the customer’s account K. Control amounts posted to the accounts receivable ledger are compared with control totals of invoices. D. Analyze your data and draw a conclusion concerning the population under study.
We are assuming that fraud has been discovered in the two areas you chose, so that’s the conclusion! E. Communicate your results. To communicate your results, list some enhancements or changes to controls that need to be made to keep the fraud from occurring in the future. Fraud Item #1 Statements will be mailed out to the customers that have an outstanding balance every month. Fraud Item #2 The control amounts that are posted to the accounts receivable ledger will be compared with control totals of invoices at least once a month.

Don't use plagiarized sources. Get Your Custom Essay on
Auditing Persuasive Essay
Just from $13/Page
Order Essay
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Order your essay today and save 25% with the discount code: COCONUTPlace Order
Live Chat+1(978) 822-0999EmailWhatsApp