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Business
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| Number of pages / Number of words: |
3 / 702 |
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In example 5, the auditor performed the inquiry procedure. The Audit Senior communicated with Betty and the customer, and verified that the returned items were received by Total Computer. However, the typical terms do not allow a customer to return product, except for warranty purposes, and this customer had returned a large number of first-quality items...
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However, the typical terms do not allow a customer to return product, except for warranty purposes, and this customer had returned a large number of first-quality items. According to SAS No. 99, “Consideration of Fraud in a Financial Statement Audit,†auditors are responsible for presuming a risk of material misstatement due to fraud in the recognition of revenue and to consider confirming with customers terms not ordinarily included in positive confirmations...
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