(Audit programs and assertions) Assume that you are responsible for
developing an audit program for a manufacturing client that sells to over
1,400 customers. You want to ensure your audit program addresses all relevant
assertions for sales and accounts receivable. Address the following question
in the context of the audit sales and receivables for this manufacturing
client.
Required
What is the purpose of
an audit program?
Explain why auditors
translate audit assertions into specific audit objectives when
developing an audit program.
If you are auditing
the existence and occurrence assertion, what specific audit objectives
should be accomplished by developing an audit program? Explain the
purpose of each audit objective.
If you are auditing
the valuation or allocation assertion, what specific audit objectives
should be accomplished by developing an audit program? Explain the
purpose of each audit objective.
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