POST ACC522 Unit 4 Assignment Latest 2018 October

ACC522 Advanced Audit Issues

Unit 4 Assignment 

Individual Assignment 4 template

Case 4 - Exercise 1a

Lakeside Company

Revenue and Cash Receipts - Distributorship Revenue Recognition

Prepared by:        

Reviewed by:   

Case 4 - Exercise 1b

The Lakeside Company

Internal Control Narrative - Cash Receipts

December 31, 2012

Prepared by:

Date:

Analyze the flowchart repre¬sentation of the Cash Receipts procedures, and prepare a written memorandum to accompany and explain this particular system.

Treasurer's Office:

Assistant to the President:

Sales Division:

Controller's Office:

Case 4 - Exercise 4-2 (a)

INTERNAL CONTROL - PRELIMINARY ANALYSIS

CLIENT:     

SYSTEM:    

DATE:

PREPARED BY:                                                 

List each document found in this system, the number of copies, and whether it is prepared internally or externally.

Answer each of the following questions.  For each "No" answer, comment on whether an internal control weakness is indicated.

(9)       Indicate any other specific internal control features that have been built into this system.

(10)    Indicate any other specific internal control weaknesses that appear to be present in this system.

Exercise 4-2 (b)

Abernethy and Chapman

INTERNAL CONTROL – Control Risk Matrix – Revenue Cycle

Client:  Lakeside

H – high risk, M- moderate risk, L- low risk

Note: Each deficiency needs to be evaluated by identifying compensating controls, potential misstatements, materiality and the effect on audit evidence.

Case 4 - Exercise 3

The Lakeside Company

Internal Control Weaknesses - Revenue Recognition Procedures

December 31, 2012

Improvements that could be made in the revenue recognition system for the distributorship sales division are listed below.