Statements of accounts receivable balances are mailed to customers each month by the accounts receivable accounting department. Customers’ reports of disputes or differences shall be handled by customer service.
Cash Disbursements
All disbursements are made by check, signed by the controller.
Artifact Two: Sample Audit Program
Your second portfolio artifact will be the professional audit program based on PCAOB audit standards that you create for Newham, an influential client at S. N. H. U, LLC. Make sure to incorporate the feedback you receive from your instructor while developing this audit program. The following sections should be included:
Business Risk Analysis: Identifying risk in an organization and the environment in which it operates is the first step in approaching a potential audit and designing an effective audit program. To analyze business risk, you must:
Gain an understanding of Newham o Investigate the industry in which Newham operates o Analyze and assess the risk, including fraud, involved in the company and industry o Identify the relevant PCAOB audit standards and address their relevance to the Newham audit risk assessment
Sample Audit Program: An audit program involves compiling a list( program) of procedures for the auditors to perform in order to obtain evidence and reasonable assurance that internal controls are operating properly and thus producing accurate financial statements. To compile a sample audit program, you have been provided with tests of control in revenue and inventory