Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tommy is a manufacturer and distributor of fashion

Tommy is a manufacturer and distributor of fashion clothing to retail stores on credit terms....

50.1K

Verified Solution

Question

Accounting

Tommy is a manufacturer and distributor of fashion clothing to retail stores on credit terms. Its year-end was 31 March 2021. You are the senior auditor assigned to the year-end audit that is due to commence shortly. It was brought to your attention that Tommy receives monthly statements from its suppliers and although these have been retained, none have been reconciled to the payables ledger as at 31 March 2021. Calvin Kleene uses an accounting software to process and prepare it financial accounting statements. The audit engagement partner has asked you to recommend the procedures to be performed on supplier statements despite routine internal audits. 


Required: 

A. Describe FOUR (4) substantive procedures you would perform to obtain sufficient and appropriate audit evidence in relation to supplier statement reconciliation. 

 B. Explain THREE (3) factors the external auditor will need to take into consideration when determining whether the work of the internal auditor can be used as audit evidence. 

C. Assess the advantages and disadvantages of using of computer-assisted audit techniques (test data) in conducting audit procedures.  

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students