Audit Program Design Part Ii Essay

3400 Words Mar 13th, 2012 14 Pages
Audit Design Program Part II
March 12, 2012

Apollo Shoes, Inc. – Test of Controls, Substantive Test and Analytical Procedures During the audit plan, there are three important cycles that will be of focus for our team, they are Sales and Collection Cycle, Payroll and Personnel Cycle, and Acquisition and Payment Cycle. There are five classes of transactions in the sales and collection cycle; sales cash receipts, sales return and allowances, charge-off uncollectible accounts, and estimate of bad debt expense. Under the sales class are four business functions and the under the other classes are one each. Business functions in the sale class cover, processing customer orders, granting credit, shipping
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| |Observe whether monthly statements are sent to customers. |
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|Test of Control |Determine if all transactions are properly classified. (Classification) |
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| |Examine documents to ensure signatures are present from verification. |
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| |Review sales invoices for billing

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