Audit Module1 Essay
A Computerized Audit Practice Case
Description of the Practice Case
This case has two learning objectives. First, it provides the student an opportunity to apply auditing concepts to a “real-life” audit client. The client, Biltrite
Bicycles, Inc., operates within a unique business climate and internal control environment, and the student must assess inherent risk and control risk accordingly. The case contains modules involving sampling applications, risk assessment, audit documentation, analysis of design of controls, tests of details, audit adjustments, and an audit report upon completion of the 2009 engagement.
Second, the case enables the student to use the computer as an audit-assist device. The student …show more content…
The dealer network consists of approximately 1,500 outlets located throughout the United States and Canada.
All products carry a full one-year warranty covering parts and labor. The company is known for the quality of its products and for its strong service support. As of the end of 2009, the company had a total of 60 customer accounts ranging in amounts from $2,200 to approximately $1,350,000. The cumulative accounts receivable at year-end December 31, 2009, was $12 million.
Biltrite experienced steady growth in sales and profitability of all product lines from the date of incorporation until about four years ago. From about four years ago until the current year, competition from international manufacturers has had a significant impact on Biltrite’s revenue and net profit
Module IV may be completed after either Chapter 10 or Chapter 14. Check with your instructor.
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