Parson Co Audit procedures detect errors & objective
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Parson Company has an inexperience staff auditor who failed to detect the errors listed below. Give the substantive test that should have found each error. Indicate the account and the audit objective for each item and indicate the type of evidence obtained.
1) Some accounts were incorrectly aged in the Accounts Receivable aging schedule.
2) The accounts receivable turnover ratio was much smaller that expected results.
3) Goods invoiced were not shipped.
4) Some sales at year end were recorded in the wrong year.
5) Several sales were posted for the correct amount, but to the wrong customer accounts.
6) The allowance for uncollectable accounts was too low.
7) Several sales were entered and posted at incorrect amounts.
8) Mathematical errors were made in totaling the AR ledger
9) An unrecorded sale at the balance sheet data was collected in the next month
10) A few fictitious sales were recorded.
11) The pledging of some customers accounts as security for a loan was not reported
12) Some year-end cash receipts were recorded in the wrong accounting period.
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Solution Summary
Table in excel has an audit procedures and account and audit assertion for each of the 12.
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