This posting contains an APA formatted MS Word file that address the various processes and steps that are involved in the auditing procedure.© BrainMass Inc. brainmass.com October 1, 2020, 8:47 pm ad1c9bdddf
Please find attached an APA formatted MS Word file containing the text below. I have also attached links to sources which may help to increase your understanding of the subject matter.
As prescribed by the SEC, publicly-held companies are "required to prepare documentation that describes how the organization's accounting systems and controls are supposed to operate" (Rittenberg, 2004, p.174). According to Rittenberg, such information provides an interested party with an initial understanding of procedures, and along with tests of controls performed by management, "can effectively become the basis for an auditor's testing of management's assertion on the effectiveness of internal controls" (p. 174).
Through the examination of the processes and procedures that take place within an organization, an auditor develops an understanding of controls in place, and whether or not the controls are operating effectively. For example, if the tests of controls indicate that the client is not careful about being sure shipment has taken place before billing and recording a sale, the auditor may need to increase sales cutoff testing and/or concentrate on ...
This posting contains an APA formatted MS Word file that address the various processes and steps that are involved in the auditing procedure.