Also need done in Excel.
I have attached an example of the excel sheet.
Consider and discuss the specific risks and nature of Barnes & Noble and create comprehensive work programs for the Equipment (Fixed Assets).
Submit a 500- to 700 -word document that includes the following:
- Audit steps for tests of controls, balances, transactions, analytical procedures, etc. as well as other considerations such as sample size and sample methodology.
- A brief summary page should be included in this document, 525 to 700 words, for each of the audit programs. Include in this summary specific financial information gleaned from the current Form 10-K used to perform an analysis of work program steps. For example, if the team noted significant swings in the Fixed Assets balance year-over-year, identify these swings, and how you address them in your work program (this is in essence an audit procedure – analytical review).
Respond in 100 words
The goal in the auditing of accounts payable is the assessment of the financial records for complete accuracy. It is also to identify areas that have potential for improvements of the internal controls and different ways to reduce fraud. An audit program is an audit plan or action plan that will explain the procedure that will be followed by the auditor. For an audit test for the notes payable that will be:
- Recognize the clients-it is important to know the client before the audit starts
- Business risk assessment-these will be risks associated with errors in the financial statements that could lead to failure
- Distressing notes payable-all business face inborn risks that relate to accounts payable, to reduce such risk, an audit should prepare the definite procedure for notes payable.
- Setting of acceptable misstatement
- Assessing the control risk for the notes payable
- Tests should be designed and performed for control and acquisition of capital
- Selecting the sample of the noted paid and tracing of payment of interest expense with the general lender account
- Recalculation of sample of paid notes for the period in which the audit is being conducted
- Samples taken for receipt of notes payable with the bank statement
This applies to my chosen organization because I actually do most of these steps every month at month end and twice a year an auditing company comes in and does a more thorough job. I will take all invoices and match them up to payments and will also use the bank statements to see what payments have cleared and verify that the amounts match up.
Respond in 100 words
Audit tests of notes payable have four main objectives and they are to determine whether the internal controls over accounts payable are adequate, there was a proper authorization and was recorded properly for all transactions fro principles and interest involving notes payable, liability for notes payable and interest expense are properly stated and disclosures related to notes payable and related expense are in accordance with the four presentation disclosure audit objectives. Before a note can be issued, it must go through a board of directors to give the proper authorization. No note should be issued without authorization. When a note is due, there should be an automatic issued to pay for the note as soon it is due. This is having adequate control of the prepayment of principles and interests. Once a note is paid, there should be proper documents saying it is paid and it should be canceled and put in the hands of somebody of authority. Lastly, there should be a periodic independent verification. which simply means that the detailed notes record should in reconciled with the general ledger.