20
Feb
10

B.01 Worksheet Group 1

Leader :

Pandam Rukmi Wulandari (20207845)

Members :

Delvita Dita Putri Anggrayni (20207269)

Shelly Huzaynah (21207019)

Sri Wahyu Handayani (21207047)

Windy Atmawardani Rachman (21207174)

Object             : Manufacturing Accounts Payable Department

Clien               : Anthoni CPA

Item/

Description

Weaknesses Strength Recomendation
Otoritation There’s no complete authorize (due date, prepared by  and agreed by) Completely authorize page would be necessary thing to avoid error in authorizing.
Invoice There’s  no invoice number Prevent fictitious purchases. Invoice number required.
Order Purchase There’s no classification products related with it
  1. 1.   Prevent waste, because the purchase of goods that should not be necessary
  2. 2.   Preventing game prices can hurt the company.
Classification products needful.
03
Feb
10

A.02 Chapter 14 (14-29)

14 – 29
A. SER= Number of exception / sample size
Column Planned Audit SER TER(5%) – SER
ARACR Population Size Sample Size Number of Exeption (%)
1 10 5000 200 4 2 3
2 5 5000 200 4 2 3
3 5 5000 50 1 2 3
4 5 50000 200 4 2 3
5 5 500 100 2 2 3
6 5 900 100 10 10 0
7 5 5000 100 0 0 5
8 5 500 25 0 0 5
B.
Column Planned Audit CUER
ARACR Population Size Sample Size Number of Exeption
1 10 5000 200 4 4
2 5 5000 200 4 4,6
3 5 5000 50 1 9,2
4 5 50000 200 4 4,6
5 5 500 100 2 6,2
6 5 900 100 10 16,4
7 5 5000 100 0 3
8 5 500 25 0 11,3
C. 1. Decrease in ARACR                      = CUER Increase
2. Decrease in Population size             = CUER Increase
3. Decrease in sample size                 = CUER Increase
4. Decrease in number of exception   = CUER Increase
D. Sample size and Number of exception have the greatest effects on the CUER, population size has the least effect on the CUER.
E. It is necessary to compare the CUER with the TER because the auditor need to analyze  the individual exception to find the weakness of internal control.
For complete document, click Chapter14 (14 – 29)
03
Feb
10

A.02 Chapter 14 (14-28)

14 – 28
A. By using judgement
Column Planned Audit Initial Sample
ARACR TER EPER Population Size
1 10 6 2 1000 90
2 5 6 2 100000 135
3 5 5 2 6000 150
4 5 6 2 1000 100
5 10 20 8 500 55
6 10 20 2 500 45
7 5 2 0 1000000 190
B. By using attributes sampling from the appropriate part of Table 14-8
Column Planned Audit Initial Sample
ARACR TER EPER Population Size
1 10 6 2 1000 88
2 5 6 2 100000 127
3 5 5 2 6000 181
4 5 6 2 1000 127
5 10 20 8 500 25
6 10 20 2 500 18
7 5 2 0 1000000 149
C. Increase in ARACR          = Sample Decrease
Increase in TER                = Sample Decrease
Increase in EPER              = Sample Increase
Incrase in population size   = Sample Increase
D. because there are differences in ARACR and TER percentage and also there is a huge differences in population size.
E. ARACR and TER have the greatest effect on the initial sample size and population size has the least effect on the initial sample size.
F. It called the initial sample size, because the exceptions in the actual sample must be evaluated before it is possible to know whether the sample is sufficiently large to achieve the objectives of the test.
For complete document,,click Chapter 14 (14 – 28).
03
Feb
10

A.01 Internet Problem (Worksheet 12)

Shelly Huzaynah 21207019

SMAK01-7

Auditing 2

Question :

  1. How does IT governance fit into an organization’s overall governance?

Answer :

IT governance fit into an organization’s overall governance, it because of these three reason :

  1. IT contributes directly to market value.
  2. IT is essential for the achievement of business goals.
  3. IT involves large investments and business risks.

Continue reading ‘A.01 Internet Problem (Worksheet 12)’

03
Feb
10

A.01 Internet Problem (Worksheet 11)

Shelly Huzaynah 21207019

SMAK01-7

Auditing 2

Question :

  1. What are three common pitfalls that should be avoided during brainstorming sessions? How can these problems be avoided?

Answer :

There is three common pitfalls that should  be avoided during brainstorming sessions, because it can hinder an audit team’s brainstorming effectiveness :

  1. Group domination, is one of the most corrosive problems. If the participant dominating the process can quickly squelch the creative energies of the group as a whole, which can reducing the likelihood the team will identify any actual fraud risks.
  2. Social loafing, also called free-riding. It occurs when participants disengage from the process, expecting that other team members will pick up the slack.
  3. Groupthink, is another pitfall to avoid. This phenomenon occurs when team members become so concerned with reaching consensus that they fail to realistically evaluate all ideas or suggestions.

Continue reading ‘A.01 Internet Problem (Worksheet 11)’

03
Feb
10

A.01 Internet Problem (Worksheet 10)

Shelly Huzaynah 21207019

SMAK01-7

Auditing 2

Question :

  1. Use EDGAR to search for Tri-Valley Corporation (TVC) and Monarch Staffing Inc. Find TVC’s 10-K and Monarch’s 10-KSB for the year ended 12-31-06.

Answer :

Tri – Valley Corporation (TVC), 10-K Report, Year ended 12/31/2006.

http://www.sec.gov/Archives/edgar/data/22551/000002255107000009/tvc123106-10k.htm

Monarch Staffing Inc. 10-KBS Report, Year ended 12/31/2006.

http://www.sec.gov/Archives/edgar/data/1177326/000114037707000054/0001140377-07-000054-index.htm

Continue reading ‘A.01 Internet Problem (Worksheet 10)’

03
Feb
10

A.01 Internet Problem (Worksheet 9)

Shelly Huzaynah 21207019

SMAK01-7

Auditing 2

Question :

Internet Problem 9-1 (Materiality and Tolerable Misstatement)

Establishing materiality for the audit of a client’s financial statement requires considerable judgment. The allocation of the auditor’s preliminary judgment about materiality to the client’s accounts requires substantial judgment as well. For this reason, decisions about materiality are made by more experienced auditors. The following problem affords you an opportunity to apply the concept of materiality to an actual set of financial statements.

  1. Imagine that you are employed as an auditor in a CPA firm that performs the audit of Microsoft. Your firm’s materiality guidelines indicate that overall engagement materiality should be set at an amount between five and ten percent of income before taxes.
    1. Apply your firm’s guidelines to Microsoft’s 2003 financial statements. What percentage of income before taxes do you believe is appropriate? Why? What do you.
    2. Given Microsoft’s 2003 balance sheet, what asset line items would be allocated the highest amount of tolerable misstatement? Why?

Answer :

Continue reading ‘A.01 Internet Problem (Worksheet 9)’