Client Name: Apple Inc. Budget Actual For the Period Ended: 9/30/17 Start Date:
ID: 2546684 • Letter: C
Question
Client Name: Apple Inc.
Budget
Actual
For the Period Ended: 9/30/17
Start Date:
7/31/17
Nature of Assignment: Integrated Audit
End Date:
10/31/17
Hours:
36,000
Audit steps for tests of controls, balances, transactions, analytical procedures, etc. as well as other considerations such as sample size and sample methodology.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
WP
Requirement
Procedure
Comp
Notes and Evidence
Date
Init.
8.0
(Acquisition)
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
9.0
(Payment)
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
10.0
(Fixed Assets)
10.1
Account Balance of fixed assets in a financial statement is accumulated value from past assets additions and deletions up to a given point in time.
Verifies the accuracy of fixed account balance by obtaining the detailed schedule on purchases and dispositions in the current period, including beginning balances.
10.2
Validation of Account transactions that listed in a financial statement are from valid transactions, have been received and actually exist in service.
Verifies the purchases are properly authorized, transactions are valid with the supporting documents such as vendor’s invoice, and the existence of a recorded fixed assets by physically examine the assets at the place where it supposedly has been placed in service.
10.3
Valuation of Assets
Verify the proper valuation of assets by examining vendor’s invoices and other purchase supporting documents in reference with the source information on correct asset value and depreciation which reduces the carrying value of fixed assets.
10.4
Classification of Assets
Examine selected repair and maintenance with the supporting transactions documents to determine the recorded fixed assets are correctly classified as capital assets, and certain expenses that should be capitalized as part of the fixed assets.
11.0
(Notes Payable)
11.1
Verification of notes payable interest
Recalculate approximate interest expense on the basis of average interest rates and overall monthly notes payable.
11.2
Verification of notes payable documentation
Audit of the records to verify proper information is recorded and there is proper authorization
11.3
Verification of interest expense
Recalculate approximate interest expense on the basis of average interest rates and overall monthly notes payable.
11.4
Verify the total notes payable
Compare individual notes outstanding with those of the prior year.
11.5
11.6
11.7
11.8
12.0
(Owner’s Equity)
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
Tickmarks:
(a) Enter the workpaper reference number in this column. For each area of testing, the workpaper number will have a new leading digit. For example, the first cash test would be 1.1 and the second would be 1.2, but upon moving to financial instrument testing, the numbering would start at 2.1. The order will be as follows: 1. Cash 2. Financial Instruments 3. Sales 4. Receivables 5. Inventory 6. Warehousing 7. Payroll 8. Acquisition 9. Payment 10. Fixed Assets 11. Notes Payable 12. Owner’s Equity
(b) Enter the requirement that the auditor is seeking to meet by testing. For example, balances in accounts receivable exist.
(c) Describe the testing procedure that will take place to meet the audit requirement. To continue with the example from above, confirmations will be sent to third parties to verify the balance stated in the accounts receivable subledger.
(d) Mark Y (Yes) or N (No) to recognize the entity was compliant with the requirement after performing the procedure.
(e) Explain any findings or relevant evidence related to the decision about whether the entity was compliant (Y) or not (N)
(f) Enter the date the staff member determined the entity was compliant or not.
(g) Enter the initials of the staff member that performed the testing.
*** I only need to acquisition and payment***
Client Name: Apple Inc.
Budget
Actual
For the Period Ended: 9/30/17
Start Date:
7/31/17
Nature of Assignment: Integrated Audit
End Date:
10/31/17
Hours:
36,000
Explanation / Answer
*** I only need to acquisition and payment*** : So the answer is.
For Acquisition :
Audit Procedures:
The internal auditors' role in bank mergers and acquisitions usually is associated with the due-diligence process. Auditors can provide senior management with vital information about the value of the company being acquired, its financial condition, any weaknesses in its financing or internal controls as well as its history, customer base, property conditions and management practices
For Payments:
Audit Procedures
The auditor examines payments to vendors following year end and then reviews any open Accounts payables files.
The auditor reviews a report of all accounts payable items that were not matched by the automated matching system, but had been paid upon authorization of the accounts payable department. A sample of selected items is taken and traced to the vendor payment and supporting documentation.
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