Audit Program Part Iii

Audit political platform Design Part III

Audit Program Design Part III
Introduction
To continue the audit design for Apollo Shoes, Inc., we bequeath pyramid upon the completed tests of controls, substantive tests of transactions, and revaluations of uninflected procedures for the sales and assembly cycle, payroll and personnel cycle, and acquisition and payment cycle. Moving forward, we go forth now conduct the same types of tests and reviews for the inventory and warehousing cycle, and the interchange cycle. Upon the completion of the tests, we go away provide a detailed review.
record and Warehousing Cycle
The objective of auditing the inventory and warehousing cycle is to baffle that raw materials, work-in-process, finished goods inventory, and cost of goods sold are state fairly in accordance with generally accepted accounting system principles. We will accomplish this using the aforementioned tests of controls, substantive test, analytical procedures, and tests of details (Arens, Elder, & Beasley, 2006). The audit of inventory and warehousing is divide into five parts, for which we have outlined our audit procedures below.
1.



Acquiring and save Raw Materials, Labor and Overhead: Apollo Shoes, Inc has not manufactured their testify shoes up to this point; therefore, there are no true raw materials, just the labor and overhead. Therefore, the substantive accord of this part of the audit is processing the obtain orders. However, because tests on purchase orders were already completed through the acquisition and payment cycle, we will not need to re-test them in this cycle.
2. Transferring assets and cost: We will review your process of internal transfers, specifically testing the cost accounting records.
3. Shipping goods and recording revenue and costs: Because recordation of shipments and related costs is part of the sales and collection cycle, we will not be conducting any reviews or tests for it in this portion of auditing.
4. Physically observe...If you privation to get a full essay, order it on our website: Orderessay



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